United Technologies Corp. (UTX) is breaking out on the upside. We looked at the charts of UTX at the writing that, "If you want to go long UTX you can buy it at current levels or above $138...and look for gains to $150 and then the low $160's." UTX has since rallied to new highs for the move up and has made a breakout on our Point and Figure chart. A new 52-week high could happen soon. Let's take a look.
In this daily bar chart of UTX, below, we can see that prices are testing the January/February highs. UTX is above the rising 50-day average line as well as the bullish 200-day line. The trading volume has improved slightly this month and the daily On-Balance-Volume (OBV) line is still creeping higher from an early May low. The trend-following Moving Average Convergence Divergence (MACD) oscillator has just turned up to a fresh go long signal above the zero line.
All our indicators are bullish in the weekly bar chart of UTX, below. Prices are above the rising 40-week moving average line. The weekly OBV line is firm and the MACD oscillator on this longer time frame has been bullish since early July.
In this Point and Figure chart of UTX, below, we can see the double top breakout at $138. We can also see an upside price target of $183 being projected.
Bottom line strategy: Long UTX? Great! Not long UTX yet? Buy it here. Risk to $132 looking for gains to $150, $160 and then $183.