Illinois Tool Works (ITW) recently made a new 52-week high. Prices have broken above the May and August highs. Can the gains continue? Let's check on the charts.
In this daily bar chart of ITW, below, we can see that prices corrected down into an early October low and then soared quickly to new highs. Prices are trading above the rising 50-day and the rising 200-day moving averages.
The On-Balance-Volume (OBV) line has been strong since late September and confirms and supports the price gains. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In this weekly candlestick chart of ITW, below, we can see that prices have doubled from the "pandemic low". ITW is trading above the rising 40-week moving average line. The weekly OBV line shows a long bullish rise. The MACD oscillator has crossed to the upside for a new outright go long signal.
In this daily Point and Figure chart of ITW, below, we can see a potential upside price target in the $320 area.
Bottom line strategy: ITW is still in an uptrend so we should trade it from the long side on available weakness. Risk to $230. The $320 area is our upside price target for now.
