Cummins Inc. (CMI) is having a strong upside day making a new 52-week high. We haven't reviewed the charts of CMI for more than a year, so an update is due.
In this daily bar chart of CMI, below, we can see that prices have been strong since the "V" bottom back in March. Prices made new highs by late July and CMI is making another new high Monday. Prices are trading above both the 50-day and the 200-day moving average lines.
The On-Balance-Volume (OBV) has been rising the past six months and tells me that buyers of CMI have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator looks like it has made a low and is turning upwards to a fresh buy signal.
In this weekly bar chart of CMI, below, we can see a positive picture. Prices are in an uptrend above the rising 40-week moving average line. The weekly OBV line has been firm since March, but still needs to make a new high to confirm the new price highs on CMI. The MACD oscillator is bullish, but has narrowed a little in recent weeks.
In this Point and Figure chart of CMI, below, we can see the new high that was just made and a $246 price target.
Bottom line strategy: CMI is making a move to the upside and traders who are looking to put some cash to work could go long at current levels risking a close below $200 for now while looking for gains to the $246-$250 area.
