Ingersoll-Rand Plc (IR) was reviewed a month ago when I wrote that, "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." IR has not yet reached our $113 price target but a new review seems like a good idea now.
In this daily bar chart of IR, below, we we can see that late July upside breakout and follow through buying. Prices are above the rising 50-day moving average line and above the rising 200-day moving average line. The daily On-Balance-Volume (OBV) line has been strong the past two months with the line making new highs this month. The trend-following Moving Average Convergence Divergence (MACD) oscillator is well above the zero line in a bullish mode.
In this weekly bar chart of IR, below, we have a bullish alignment of our favorite indicators. Prices have broke out from a consolidation pattern and are above the rising 40-week moving average line. The weekly OBV line shows a three-year uptrend and the weekly OBV line is bullish and rising.
In this Point and Figure chart of IR, below, we can see an upside price target of $112.71 or let's call it $113.
Bottom line strategy: Traders who are long IR from our last update should continue to hold but they can raise sell stop protection to $94 now. Continue to trader IR from the long side looking for gains to the $113 area.