Textron has pushed old highs since the summer, and some traders may see potential for further upside.
The first pattern on today’s chart is the $74.81 level, the highest weekly close in the first half. Strong earnings drove the aerospace stock above that level in late July. It tested that price area each of the next four months, and kept closing above it. Has old resistance become new support?
TXT next troughed around $75.70 on December 8. That higher weekly low may suggest bulls are gaining the upper hand.
The stock then proceeded to break a falling trendline that began in mid-October. MACD has additionally turned up. Those points could mean the shorter-term trend is getting more bullish.
Turning to the longer-term, the 50-day simple moving average (SMA) had a “golden cross” above the 200-day SMA in August. Also notice how TXT has followed its 100-day SMA.
Finally, the stock is inching toward its high early last year. That could increase the odds of a breakout.
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