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.
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