• 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

Carrier Global Appears Poised for a Trading Bounce

The shares of the heating and air conditioning giant could make for a short-term play.
By BRUCE KAMICH
Feb 23, 2022 | 08:12 AM EST
Stocks quotes in this article: CARR

In his first Executive Decision segment of Tuesday's "Mad Money" program, host Jim Cramer spoke with David Gitlin, chairman and CEO of Carrier Global Corp. (CARR) , the heating and air conditioning giant that gave a bullish outlook during its recent analyst event. 

Gitlin said there are many long-term growth trends that are driving Carrier. The pandemic has opened new possibilities when it comes to creating safe indoor environments, he said. Carrier is also a leader in cold storage technology, which is needed for vaccines and other critical medical supplies, he noted.

When asked about inflation, Gitlin said costs are rising, but Carrier is working hard to reduce costs so when prices retreat its gross margins will expand even more.

Let's look beyond the fundamentals and check out  Carrier's charts and technical indicators. 

In this daily bar chart of CARR, below, we can see that prices broke down from a sideways trading range in January. Prices broke below the 200-day moving average line and continued lower. CARR is trading below the declining 50-day average line as well as the cresting 200-day simple moving average. A bearish dead or death cross can be seen earlier this month when the 50-day average declined below the slower-to-react 200-day line. The On-Balance-Volume (OBV) line has been in a decline from September and tells us that sellers of CARR have been more aggressive than buyers for several months. The 12-day price momentum study in the bottom panel shows a higher low from January to February while prices made a lower low. This is a small bullish divergence but it could be signaling a potential trading bounce. 

 

In this weekly Japanese candlestick chart of CARR, below, we have yet to see a bottom reversal pattern (the daily chart is more positive). The two most recent candles could be spinning tops with their small real bodies, but bullish confirmation is lacking so far. Prices are below the 40-week moving average line. The weekly OBV line shows a decline from August but the movement in February could become a low. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but has started to narrow and that is a slight positive sign. 

In this daily Point and Figure chart of CARR, below, we can see that prices have reached a downside price target of $45. Reaching a price target does not mean this is a buying opportunity, but it can mean that technically oriented traders may be covering shorts. 

In this weekly Point and Figure chart of CARR, below, we can see that the $34 area is a potential longer-term price target. 

Bottom line strategy: The daily candlestick chart of CARR (not shown) shows us a bullish engulfing pattern. This pattern along with the bullish divergence from the price momentum study could give us a trading bounce. Nimble traders could buy CARR here for a rebound to the $50-$52 area. This just a short-term trade. Risk to $43.

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: Earnings | Investing | Stocks | Technical Analysis | Housing Market | Construction & Engineering | Industrials | Manufacturing | Mad Money | Executive Interview | Real Money

More from Stocks

Will Reaction to Fed Give Market a Needed Washout?

James "Rev Shark" DePorre
Sep 20, 2023 4:16 PM EDT

As Fed 'proceeds carefully,' the market could use a good flush to set it up for a bounce.

Powell Tries Hard to Hide His Dovish Side

Peter Tchir
Sep 20, 2023 3:47 PM EDT

Expect no Fed rate cuts, but for rates to hold higher for longer.

Investors Should Brace for a UAW Win

Bob Lang
Sep 20, 2023 1:15 PM EDT

Here's what to look out for as the auto strike continues.

I Just Can't Give Boeing the All-Clear Yet

Stephen Guilfoyle
Sep 20, 2023 12:17 PM EDT

This defense and aerospace stock looks brighter than its competitors, but it's still a tough jet to fly.

Market's on Hold, Waiting for Jerome Powell to Speak

James "Rev Shark" DePorre
Sep 20, 2023 11:22 AM EDT

The problem with trading in front of the Fed decision is that the reaction will be index-driven, and individual stock picking of little advantage.

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

  • 01:41 PM EDT CHRIS VERSACE

    Latest AAP Podcast With Helene Meisler!

    Listen in as the Action Alerts PLUS podcast talks ...
  • 09:07 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The Most Common and Costly Mistake in Investing
  • 10:23 AM EDT PETER TCHIR

    August CPI, Sticky Inflation and the Fed

    CPI, in grand scheme of things, was a non-event......
  • 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