United Technologies Corp. (UTX) has recouped about half of its September-to-December decline and it looks like further upside progress can be made in the weeks ahead. Let's run our technical check list over our favorite charts and indicators for this stock mentioned by Jim Cramer in his Real Money column "A Cheat Sheet on China Trade Talks."
In the daily bar chart of UTX, below, we can see a positive picture. UTX has rallied above the bottoming 50-day moving average line and is just a few dollars below the flattening 200-day moving average line. Trading volume was heavy into the December low and has been good the past few weeks.
The daily On-Balance-Volume (OBV) line has firmed from late 2018 and tells me that buyers of UTX have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in late January and is still bullish but has begun to narrow slightly.
In the weekly bar chart of UTX, below, we can see improvement despite the sharp decline and breaking of a number of support levels. UTX is below the declining 40-week moving average line but a weekly close above $126 would change that to a positive signal.
The weekly OBV line shows a positive turn in January and the MACD oscillator has just crossed to the upside for a cover shorts signal.
In this Point and Figure chart of UTX, below, we can see an upside price target of $135.90 -- not bad.
Bottom-line strategy: Now that UTX has retraced half of its decline, the bears are on the defensive. I look for UTX to climb higher in the weeks ahead. My upside price target is $136-$140. Risk below $115.