Illinois Tool Works Inc. was reviewed on March 28 when I wrote that "The charts and indicators of ITW are not telling me a bullish story. Traders and investors should defer purchases."
Prices weakened into an early June low but now prices are knocking on making new 52-week highs. Let's check out the latest charts and indicators.
In this daily bar chart of ITW, below, I can see that prices made lows in July and October. Prices tested the rising 200-day moving average line in late May/early June. Prices also trade above the rising 50-day moving average line. The trading volume shows more activity since February.
The On-Balance-Volume (OBV) line shows a rising pattern from October. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line but narrowing.
In this weekly Japanese candlestick chart of ITW, below, I can see that prices are trading in an uptrend above the rising 40-week moving average line. Prices are knocking on the highs of 2023 and early 2022. The weekly OBV line has been steady since October. The MACD oscillator is above the zero line and has just crossed to the upside for a fresh outright buy signal.
In this daily Point and Figure chart of ITW, below, I can see an upside price target in the $315 area. A trade at $252 should refresh the uptrend.
In this weekly Point and Figure chart of ITW, below, I see the same $315 price target.
Bottom line strategy: Traders could go long ITW at current levels and/or on strength above $252. Risk to $235. The $315 area is my first price target for now.
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