United Technologies Forms Classic Continuation Pattern

Dec 06 16:12 2017 Print This Article

United Technologies (UTX) looks ripe for a breakout to new highs as a bullish cup-with-handle pattern takes shape. Note that UTX is in the industrials sector and the defense-aerospace industry group. The Industrials SPDR (XLI) and the iShares Aerospace & Defense ETF (ITA) both hit new highs on December 1st. The chart shows UTX in a long-term uptrend because it hit a new high in July and the 50-day EMA is above the 200-day EMA. It looked like the stock was breaking down with the gap-plunge in early September, but this turned into a high-volume selling climax. The September low marks the bottom of the cup, the November low marks the handle low and the pattern highs mark resistance. A break above this resistance zone would signal a continuation higher. Signs of increased buying pressure emerged last week as the stock surged towards rim resistance on above average volume.  

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StockCharts.com was founded in 1999 by Chip Anderson, a 10-year veteran of Microsoft. StockCharts.com is a website that provides online investors with high-quality financial charts for making better investing decisions. StockCharts.com is focused on Technical Analysis - the study of price history via charts. They provide award-winning analysis tools, market commentary from respected analysts like John Murphy and Martin Pring, and a huge collection of educational resources that can help anyone become a better, more informed investor.

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