• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Is Whirlpool Corp. Poised for a Breakout?

The home appliance manufacturer has made a strong price recovery since March.
By BRUCE KAMICH
Jul 24, 2020 | 02:15 PM EDT
Stocks quotes in this article: WHR

Whirlpool Corp. (WHR) has made a very strong price recovery from its March nadir and prices are knocking on a significant upside breakout. Let's skip the laundromat and check out the charts below.

 
In this daily bar chart of WHR, below, we can see that prices were roughly cut in half in the pandemic slide. The recovery from March has been impressive. Prices moved up rapidly with just a few corrections. WHR is above the rising 50-day moving average line and above the bottoming 200-day moving average line. The quicker to react 50-day line is close to crossing above the 200-day line for a bullish golden cross.
 
This buy signal is way off the March low but can be useful in long-trending markets. The trading volume was heavy into the March low and suggests that some weaker hands sold out their positions to investors with stronger hands and a bullish vision.
 
The On-Balance-Volume (OBV) line has been very strong and tells us that buyers of WHR have been more aggressive. The OBV line has led the way and has made a new high - this can foreshadow new price highs.
 
The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment.  
 
 
 
In this weekly bar chart of WHR, below, we see a bullish setup. Prices are above the 40-week moving average line. The slope of the 40-week average line is still negative but that should not last for long.
 
The weekly OBV line has been strong and tells us that buyers of WHR have been more aggressive. This confirms the price gains since March.
 
The MACD oscillator on this longer time frame is almost crossing the zero line for an outright buy signal.  
 
 
In this daily Point and Figure chart of WHR, below, we can see a potential upside price target in the $243 area.  
 
 
 
Bottom line strategy: Risking a close below $140, traders could go long WHR at current levels and on any one or two day shallow dip. Once over the October 2019 highs, the upside targets become the $200 area and the $243 area.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Trading | Household Products | Consumer Products

More from Investing

When Any News Is Bad News Tune Into the Charts and Indicators Instead

Helene Meisler
May 26, 2022 6:00 AM EDT

How easy it is to follow the market talking heads, but let's be careful of latching onto supposed analysis of 'market participants' and 'market structure' ... whatever those are ...

4 Reasons to Be Cautiously Optimistic About the Tech Sector

Eric Jhonsa
May 25, 2022 5:15 PM EDT

Many tech valuations are now back to 2016 or 2017 levels, and quite a few contrarian indicators point to extreme bearishness.

Forget Hunting for a Bottom, Now Traders Just Want the Pain to Stop

James "Rev Shark" DePorre
May 25, 2022 4:36 PM EDT

No one trusts a bounce to last at this point, and they simply are hoping for some relief from the unpleasant action.

I'm Going to Let the Air Out of a Fundamental Rating of Air Products

Bruce Kamich
May 25, 2022 3:30 PM EDT

APD got a "Buy" recommendation, but my analysis doesn't jibe.

As Pioneer Natural Resources Blazes a Trail Higher, We Have New Price Targets

Bruce Kamich
May 25, 2022 2:50 PM EDT

Here's our updated bullish strategy on PXD.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:33 AM EDT PETER TCHIR

    Thoughts Ahead of the Fed Minutes

    Recent economic and earnings issues are convincing...
  • 02:24 PM EDT PAUL PRICE

    An Interesting Chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login