United Technologies (UTX) and a number of other companies are due to report earnings on Tuesday and during Friday night's Mad Money program, Jim Cramer thought that the best earnings would come from UTX.
In this daily bar chart of UTX, below, we can see that prices made a low in late December/early January and then rallied to early May. Since May UTX has made a saucer-like continuation pattern. I suggest this pattern will breakout on the upside because UTX is now above the rising 50-day and the rising 200-day moving average line.
The daily On-Balance-Volume (OBV) line has risen as this pattern has formed and tells us that buyers of UTX have been more aggressive during the pattern's formation. This is tends to foreshadow an upside breakout.
The Moving Average Convergence Divergence (MACD) oscillator just turned upwards for a fresh buy signal above the zero line.
In this weekly bar chart of UTX, below, we can see a bullish set-up with prices above the rising 40-week moving average line.
The weekly OBV line is edging higher and the MACD oscillator is in a bullish configuration above the zero line.
In this Point and Figure chart of UTX, below, we can see a potential upside price target of $171.
Bottom line strategy: Will the earnings for UTX be bullish Tuesday? I don't know but the charts are very positive and I would trade UTX from the long side risking a close below $133. The $171 area is our first price target.
