Illinois Tool Works (ITW) was upgraded to a "Buy" today by one firm, but are the charts convincing? Let's check a few charts and indicators to see if it is time to buy quality industrials.
In this daily Japanese candlestick chart of ITW, below, we can see that while prices did not get cut in half, they were dramatically cut down in size. Prices rebounded from the March nadir but there is not a clear reversal pattern from the candles though someone might make a case for a morning star.
The moving averages - 50-day and 200-day - have negative slopes but we do not have a bearish death cross. The trading volume has been very heavy the past month but the daily On-Balance-Volume (OBV) line remains in a downtrend from late February.
The 12-day price momentum study or indicator in the bottom panel does not show a bullish divergence between the lower lows in momentum and the lower lows in price.