United Technologies (UTX) is due to report its latest earnings numbers on Tuesday, and Jim Cramer is looking for the defense contractor to update investors on their merger with Raytheon (RTN) . Let's check out the charts.
In this daily bar chart of UTX, below, we can see that prices opened lower today and touched or tested the rising 50-day moving average line. The $150 area should be acting as support in that it acted as resistance in November and December.
The daily On-Balance-Volume (OBV) line shows only a slight amount of weakness or stalling this month so we do not have a lengthy pattern of liquidation or selling coming into today.
The Moving Average Convergence Divergence (MACD) oscillator has mostly been in a take profits sell mode since the middle of November and could move closer to the zero line in the days ahead.
In this weekly bar chart of UTX we can see a positive-looking picture and any price weakness has only been recent. Prices are above the rising 40-week moving average line.
The weekly OBV line has been in a steady uptrend from the end of 2018 and this tells us that buyers of UTX have been more aggressive.
The MACD oscillator is bullish but the two moving averages that make up the indicator could begin to narrow from here.
In this Point and Figure chart of UTX, below, we used daily data to construct the chart. Here a potential upside price target of $169 is being projected. A decline to $142.18 is probably needed to weaken this chart.
Bottom line strategy: Provided that UTX can hold around the $150 support area we should see that the uptrend reasserts itself when the broad market stabilizes.
