United Technologies Corp. (UTX) is on the edge of a bullish breakout. All three of our "go to" charts look bullish. If you are already long UTX that's great but if you've been looking to buy or to buy more this may be a good time. Let me show you what I mean.
(For more on UTX, see Risk and Uncertainty: Cramer's 'Mad Money' Recap.)
In this updated daily bar chart of UTX, below, we can see that prices are poised to retest the January/February highs. Prices are above the rising 50-day moving average line and the rising 200-day line. It is hard to tell if the 50-day line dipped below and then back above the 200-day line for a bullish golden cross.
The daily On-Balance-Volume (OBV) line has been rising from an early May low. While the OBV line has not made a new high it is moving in the right direction.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line and positive.
In this weekly bar chart of UTX, below, we can see that prices are above the rising 40-week moving average line. There was only about five weeks of price activity above $135 so we could say that resistance is not that heavy.
The weekly OBV line has made a new high for the move up unlike the daily line.
The weekly MACD oscillator recently gave a new outright go long signal.
In this Point and Figure chart of UTX, below, the noise and the volume are missing. A clear breakout at $138 can be seen along with a $162.75 price target.
Bottom line: If you want to go long UTX you can buy it at current levels or above $138. Risk below $130 for now and look for gains to $150 and then the low $160's.