United Technologies Corp. (UTX/NYSE): general review
10 May 2018, 11:28
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 123.55 |
| Take Profit | 126.00, 128.00, 130.00 |
| Stop Loss | 121.00 |
| Key Levels | 117.00, 120.00, 123.50, 127.00, 129.00 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 119.90 |
| Take Profit | 117.00, 115.00 |
| Stop Loss | 122.00 |
| Key Levels | 117.00, 120.00, 123.50, 127.00, 129.00 |
Current trend
In the middle of last week United Technologies Corp. received the European Union's approval for the purchase of Rockwell Collins, the manufacturer of electrical equipment for aircraft for USD 23 billion. The news supported United Technologies Corp. shares.
United Technologies Corp. investor — Third Point hedge fund, presented arguments in favor of dividing the industrial giant into three separate businesses, which will increase the company's value by USD 20 billion. The management of United Technologies Corp. will assess the prospects of the division at the end of the year, after the completion of the deal with Rockwell Collins.
In the previous week the stock of United Technologies Corp. grew by 3.89%. S&P 500 index went up by 1.41% during the same period.
Support and resistance
Last week, the issuer kept the support level at 117.00, which caused "bullish" sentiment. Currently company's quotes are testing the "mirror" resistance level of 123.50. The closest support level is 120.00. #UTX quotes have the potential to further resumption. MACD histogram is in the positive zone and continues to rise, which signals the strength of the buyers. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors, we can say that #UTX shares are undervalued.
Support levels: 120.00, 117.00.
Resistance levels: 123.50, 127.00, 129.00.
Trading tips
If the price consolidates above the resistance level of 123.50, one should expect the company's shares to further correct. Potential profits should be locked in by orders at 126.00, 128.00 and 130.00. Stop-loss will be placed at the level of 121.00.
If the price consolidates below the level of 120.00, one may consider selling #UTX. The moving potential is aimed at 117.00–115.00. Stop-loss should be placed at 122.00.
Implementation period: 3 days.
In the middle of last week United Technologies Corp. received the European Union's approval for the purchase of Rockwell Collins, the manufacturer of electrical equipment for aircraft for USD 23 billion. The news supported United Technologies Corp. shares.
United Technologies Corp. investor — Third Point hedge fund, presented arguments in favor of dividing the industrial giant into three separate businesses, which will increase the company's value by USD 20 billion. The management of United Technologies Corp. will assess the prospects of the division at the end of the year, after the completion of the deal with Rockwell Collins.
In the previous week the stock of United Technologies Corp. grew by 3.89%. S&P 500 index went up by 1.41% during the same period.
Support and resistance
Last week, the issuer kept the support level at 117.00, which caused "bullish" sentiment. Currently company's quotes are testing the "mirror" resistance level of 123.50. The closest support level is 120.00. #UTX quotes have the potential to further resumption. MACD histogram is in the positive zone and continues to rise, which signals the strength of the buyers. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors, we can say that #UTX shares are undervalued.
Support levels: 120.00, 117.00.
Resistance levels: 123.50, 127.00, 129.00.
Trading tips
If the price consolidates above the resistance level of 123.50, one should expect the company's shares to further correct. Potential profits should be locked in by orders at 126.00, 128.00 and 130.00. Stop-loss will be placed at the level of 121.00.
If the price consolidates below the level of 120.00, one may consider selling #UTX. The moving potential is aimed at 117.00–115.00. Stop-loss should be placed at 122.00.
Implementation period: 3 days.
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