• 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
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Bears Remain in Control of Rockwell Automation

ROK continued to weaken Tuesday. Here's our latest outlook.
By BRUCE KAMICH
May 04, 2022 | 09:12 AM EDT
Stocks quotes in this article: ROK

For his second "Executive Decision" segment on Tuesday's Mad Money program, Jim Cramer spoke with Blake Moret, chairman and CEO of Rockwell Automation (ROK) . The industrial firm reported earnings that missed expectations and the stock plunged sharply Tuesday.

Moret said Rockwell could have done better in the quarter, but supplies of semiconductors used in many of his company's products remain in short supply. But shortages are steadily improving, Moret explained, thanks to supplies increasing production and Rockwell itself, reengineering some of its products to change or streamline the number of chips they use.

Automation at the company remains a high priority for factories and manufacturing around the globe. Rockwell continues to be a leader in many industries, including EVs and batteries, life sciences and the aforementioned semiconductor equipment market.

Moret said the energy sector has also increased in importance, as Rockwell's systems are used in the production of liquefied natural gas.

Let's check out the charts and indicators as TheStreet's Quant Ratings service has downgraded ROK shares.

In our November 11 review we wrote that "Traders still long ROK should raise stops to $310. Traders who are flat could go long ROK at current levels risking to $310. The $411 area is our next price objective."

In the daily bar chart of ROK, below, we can see that the shares stalled out in November and December and then started to weaken in January. Traders who went long ROK would have been stopped by the end of the month. ROK continued to weaken and gapped lower on Tuesday with a weak close. Prices are trading below the declining 50-day simple moving average line and below the declining 200-day moving average line.

The trading volume has been increasing this year and surged sharply higher Tuesday. The On-Balance-Volume (OBV) line is in a downward trend as traders are more aggressive sellers with heavier trading volume being traded on days when ROK has closed lower. The Moving Average Convergence Divergence (MACD) oscillator is bearish.

In the weekly Japanese candlestick chart of ROK, below, we see a bearish picture. Prices broke a longer-term uptrend and now are in a downtrend and trade below the declining 40-week moving average line.

The weekly OBV line shows a decline from December to confirm the price weakness. The MACD oscillator turned lower in December/January and is now in a bearish alignment below the zero line.

In this daily Point and Figure chart of ROK, below, we can see Tuesday's sharp decline and a lower price target of $141.

In this weekly Point and Figure chart of ROK, below, we see the same $141 price target.

Bottom-line strategy: The new low for the move down on ROK Tuesday keeps the downtrend in force. Avoid the long side for now as the odds favor further declines in the weeks ahead.

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 | Semiconductors & Semiconductor Equipment | Industrial Goods | Earnings | Industrials | Mad Money | Executive Interview

More from Stocks

I'm Making Small Bets With These 2 Stocks

Bret Jensen
Jan 27, 2023 11:30 AM EST

While I remain cautious on the overall market, I continue to act upon the limited opportunities I'm finding in the current market.

Chevron Is Crushing It and for My Portfolio Too: Here's the Trade

Stephen Guilfoyle
Jan 27, 2023 10:51 AM EST

The only reason to exit the stock now is profit-taking.

Adani Companies Plunge Under Hindenburg Attack, Hurting Secondary Sale Attempt

Alex Frew McMillan
Jan 27, 2023 9:30 AM EST

Retail investors may baulk now they are being offered Adani Enterprises shares at a range well above their current trading price.

Intel Tanks (Again), but I Spy 3 Other Charts That Look Pretty Darn Good

Bob Byrne
Jan 27, 2023 9:00 AM EST

The trio consists of a beverage seller, a connectivity company and a producer of advanced driving system technology.

Sobering Conversation, Not-So-Hot GDP, Ominous Yield Spread, Rally On

Stephen Guilfoyle
Jan 27, 2023 7:49 AM EST

Plus, we take a close look at the charts of the S&P 500 and Nasdaq Composite and check out Tesla, Disney and Salesforce.

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

  • 11:48 AM EST REAL MONEY

    Watch Doug Kass on the Daily Rundown!

    In today's Action Alerts PLUS Daily Rundown, Doug ...
  • 11:03 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend On Real Money

    It's time to start using this power to build great...
  • 03:06 PM EST BOB LANG

    LEAPS Webinar

    This week, I offered a free webinar session talkin...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 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