Lamach said that after spinning out from Ingersoll Rand (IR) , they looked at their company as a startup, organizing and investing for innovation and profits. As we've seen over the past year, indoor air quality has never been more important. So, too, has refrigeration for things like vaccines. Trane has been at the forefront of innovation, creating all-new freezer technologies.
Trane is also on a mission to save the environment. Nearly one-third of all carbon emissions stem from HVAC and refrigeration systems, Lamach noted, and Trane is working on systems to eliminate those emissions.
"Profits over purpose," has always been the mantra of corporations, Lamach said, but at Trane, investors don't have to choose, they can have both.
Let's check out the charts.
In this daily bar chart of TT, below, we can see that prices have trended higher the past 12 months. Corrections have been relatively shallow and relatively short-lived. Prices are trading above the rising 50-day moving average line and tests or pullbacks to the line have turned out to be buying opportunities. The slope of the slower-to-react 200-day moving average line is also positive.
The On-Balance-Volume (OBV) line shows a consistent rise from July telling us that buyers of TT have been more aggressive than sellers. The trend-following Moving Average Convergence Divergence (MACD) oscillator is above the zero line in positive territory and poised to turn higher again.
In this weekly Japanese candlestick chart of TT, below, we can see that prices have nearly tripled from their March 2020 nadir. TT is trading above the rising 40-week moving average line but not extended (overbought) above it.
The weekly OBV line shows a positive trend the past three years and that confirms the price rise we have seen. The weekly MACD oscillator has been bullish since August.
In this daily Point and Figure chart of TT, below, we get to see more price movement than just the high, low and close of the bar chart. The software tells us that TT has reached a price target in the $172 area.
In this weekly Point and Figure chart of TT, below, we can see a price target in the $216 area.
Bottom line strategy: TT is pointed up but could dip to fill the small upside price gap made Wednesday. Traders could use this anticipated dip to go long or add to existing longs. Risk to $161 for now. The $216 area is our price target.