Shares of Ingersoll-Rand Plc (IR) broke out on the upside last week. Prices had been in large consolidation pattern from around March 2017 and they finally powered higher. Where are prices going now and what should be risk? Let's check out the charts and indicators.
In this daily bar chart of IR, below, we can see the sharp move up to a new 2018 high. Prices are above the rising 50-day moving average line and the slightly rising 200-day line. In late June we got a bullish golden cross of these two indicators as the shorter 50-day line crossed above the slower-to-react 200-day average. The volume of trading shows surges at price highs and price lows as well as the recent upside breakout.
In the middle panel we can see how the On-Balance-Volume line has been positive since November and was steady even when prices pulled back. The trend-following Moving Average Convergence Divergence (MACD) oscillator gave an outright go long signal in May and turned up for a fresh outright buy signal last week.
In this weekly bar chart of IR, below, we can see the new high that was made last week with prices above the rising 40-week moving average line. The weekly OBV line moved up to a new high and has been bullish/rising since early 2016. The weekly MACD oscillator shows a buy signal in June.
In this Point and Figure chart of IR, below, we can see the breakout trade at $96.45 and a potential price target of near $113 being indicated.
Bottom line: IR has broken out of a large consolidation pattern with upside potential. Investors and traders could go long on a shallow dip to $96 if possible or on strength to a new high. Risk to $92 while looking for at least $113 on the upside.