• 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

Is the Worst Over for Textron Stock?

Textron has come off its lows.
By BRUCE KAMICH
Jan 22, 2019 | 03:18 PM EST
Stocks quotes in this article: TXT

Textron Inc. (TXT) has skidded lower the past four months. Prices have retested a $50-$45 support zone from 2017 before bouncing modestly the past three weeks.

Has the worst been seen? Is it time to buy? Let's do our usual run through of the charts and indicators.

In the daily bar chart of, below, we can see that the share price of TXT has firmed but has so far stopped short of the underside of the declining 50-day moving average line. The declining 200-day line is well above the market and currently intersects around $62.

The daily On-Balance-Volume (OBV) line has improved a bit from the late December nadir but the trend from early October is still down, for now. The Moving Average Convergence Divergence (MACD) oscillator has moved up from its early November low and it is now close to crossing the zero line.

In this weekly bar chart of TXT, below, we can see that prices are below the declining 40-week moving average line. While prices have held the $45 area on the chart the bad news is that the $60-$55 support area was broken.

The weekly OBV line shows a decline from September but a potential reversal to the upside in December. The weekly MACD oscillator has begun to narrow toward a possible cover shorts crossover in the weeks ahead.

In this Point and Figure chart of TXT, below, we can see a nearby price target of $51.

Bottom-line strategy: TXT has come up from its recent December low but the technical indicators are not all that robust and I suspect that prices will need to trade sideways for a while before staging a sustained rally.

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 restricted from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Conglomerates

More from Stocks

Traders Face the Fed Facts

James "Rev Shark" DePorre
Feb 8, 2023 4:26 PM EST

We've seen some denial about the level of Fed hawkishness, and the action now reflects a more realistic view of the economic situation.

Further Price Weakness Lies Ahead for Zoom Video

Bruce Kamich
Feb 8, 2023 2:35 PM EST

Here's what traders should avoid.

Here Are 2 Reasonably Valued Stocks Made for the 'Compression'

Bret Jensen
Feb 8, 2023 11:30 AM EST

These companies managed to produce solid results in a difficult fourth quarter.

Snap-On Is Close to a Major Upside Breakout

Bruce Kamich
Feb 8, 2023 11:18 AM EST

Here's what aggressive traders could do now.

'What Me Worry?' Market Is Ignoring Big-Time Wall Street Bears

James "Rev Shark" DePorre
Feb 8, 2023 11:17 AM EST

What is most notable about three of the most influential market strategists is how bearish they are.

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

  • 08:20 AM EST PETER TCHIR

    Powell, 0DTE Options and How I View This Market Right Now

    Fed Chair Powell is saying all the things I think ...
  • 08:22 AM EST REAL MONEY

    LIVE EVENT: Bruce Kamich and Todd Campbell Share Their Stock Market Insights

    This Monday, Feb. 6 at 12 p.m., our very own exper...
  • 02:58 PM EST REAL MONEY

    Sarge Guilfoyle Breaks Down the Jobs Report, Fed Policy and Stocks!

    Watch it here!
  • 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