Air conditioner and HVAC leader Carrier Global Corp. ( CARR) does not have a long history of trading but the dog days of summer are making me search for investment ideas to beat the heat. Speaking of beats -- CARR just beat expectations for their latest quarterly numbers.
Let's check the charts.
In this daily bar chart of CARR, below, we can see that the shares broke a seven-month downtrend and have rallied above the bottoming 50-day moving average line. Trading volume has been more active the past three months.
The daily On-Balance-Volume (OBV) line shows improvement from June. The 12-day price momentum study shows improving readings from April for a bullish divergence when compared to the price action.
In the weekly Japanese candlestick chart of CARR, below, we can see some spinning tops and a doji to point to a bottom reversal in June and July. The weekly OBV line has started to curve upwards as a result of more aggressive buying.
The Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of CARR, below, we can see a potential upside price target in the $45 area.
Bottom-line strategy: Traders who want to beat the heat and maybe make some money could probe the long side of CARR on a one or two-day dip in price. Risk to $35. The $45 area is our price target for now.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
These big-cap names are not acting as leadership that is helping the rest of the market, although they effectively control the indexes that drive sentiment.
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
Email sent
Thank you, your email to has been sent successfully.