• 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

CNH Industrial Looks Ready to Emerge From a Decades-Long Basing Pattern

However, shares of the maker of agricultural and construction equipment still could see a period of sideways price action for a while.
By BRUCE KAMICH
Jun 23, 2021 | 07:57 AM EDT
Stocks quotes in this article: RAVN, NKLA, CNHI

In his Executive Decision segment of "Mad Money" Tuesday, host Jim Cramer spoke with Scott Wine, CEO of CNH Industrial NV (CNHI) , a machinery maker that this week announced the planned acquisition of Raven Industries (RAVN) for $2.1 billion.

Wine said in today's market farmers need productivity, and precision farming with high-tech equipment is how to get that done. That's why CNH, along with Raven, will be able to offer farmers a full assortment of precision equipment, including autonomous vehicles.

Wine also commented on CNH's partnership with the troubled Nikola Corp. (NKLA) . He said while there's no denying the company's past troubles, the CNH partnership is a good one and Nikola is helping to advance their technology.

CNH is also in the process of separating its on-highway and off-highway products to better allow each business to follow its own trajectory, Wine said.

Let's check out the charts and indicators.

In this daily bar chart of CNHI, below, we can see that prices have more than doubled in the past 12 months. Prices are testing the rising 50-day moving average line. The slope of the slower-to-react 200-day moving average is positive and intersects around $13. The trading volume has been increasing since September and that is a positive sign for old chart readers like myself. The On-Balance-Volume (OBV) line shows a rise the past year to confirm and support the price advance. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been weakening since January and is pointed down toward the zero line and a potential outright sell signal.

In this weekly Japanese candlestick chart of CNHI, below, we can see a bearish engulfing pattern at the beginning of June to mark a top reversal. A long red candle confirms the pattern. Prices could trade sideways or lower from here. The slope of the 40-week moving average is positive and the line intersects around $13.50 or so. The weekly OBV line stalled in May. The MACD oscillator has crossed to the downside for a take profit sell signal.

In this daily Point and Figure chart of CNHI, below, we can see a potential price target in the $41 area.

In this long-term bar chart of CNHI, below, we can see that prices are coming out of a lengthy base pattern. The height of the base projects to the $35-$40 area.

Bottom line strategy: If you look at a long-term chart of CNHI (above) you can see that it is just about ready to make a breakout from a 20-year base. A strong weekly close above the highs of 2008 should not be ignored, but until that happens traders are likely to endure a period of sideways price action. Prepare to become a buyer.

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: Mergers and Acquisitions | Investing | Stocks | Technical Analysis | Construction & Engineering | Agriculture | Manufacturing | Mad Money | Executive Interview | Real Money

More from Stocks

Six Points About Fed Day

James "Rev Shark" DePorre
Mar 22, 2023 4:24 PM EDT

Here are my main takeaways from what happened as the Fed, Treasury Secretary spoke.

Here's How I'd Grade Powell, Yellen on a Testing Day

Peter Tchir
Mar 22, 2023 3:50 PM EDT

We got the rate news, Fed press conference and words from the secretary of the Treasury.

When It Comes to Microsoft, Proceed With Caution

Bruce Kamich
Mar 22, 2023 1:18 PM EDT

Let's see what the charts and indicators are saying.

Cash Is King, and These 3 Stocks Look Pretty Royal

Jonathan Heller
Mar 22, 2023 12:46 PM EDT

Let's check out stocks that hold large levels of liquidity and why they should be on your radar now.

I've Got a List of Stocks I Want to Buy, When the Coast Is Clear

James "Rev Shark" DePorre
Mar 22, 2023 11:47 AM EDT

I'll be looking for signs that the Fed rate decision is a catalyst for a change in market character, but for now we just have the bull vs. bear arguments and some surprisingly strong action.

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

  • 05:00 PM EDT CHRIS VERSACE

    AAP Podcast on the Fed Decision!

    Listen here!
  • 02:38 PM EDT REAL MONEY

    Fed Hikes Rates 25 Basis Points

    Here's what stood out in the statement.
  • 10:28 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    There are exceptions to conventional trading wisdo...
  • 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