Crabs Invading the Auto Sector
- Posted by Greg Harmon
- on February 13th, 2013
Many plays in the auto sector have been heating up over the past few weeks. In fact the whole place is getting so hot that it feels like they are at the beach in the summer. And rounding out the picture there are Crabs showing up. But how hot is it? Take a look. The chart for Johnson Controls, $JCI, below is consolidating in a bull flag between 30.60 and 32.00. A move over that flag carries a Measured Move higher to 39.40. It has support from a rising and bullish Relative Strength Index
(RSI) and a Moving Average Convergence Divergence (MACD) histogram that is about to cross to positive. If that were not enough to get you interested in a break over the flag, it is also in the middle of a Crab pattern. This harmonic pattern gives a very tight range for a Potential Reversal Zone between 41.74 and 41.98. Two very different approaches both give targets more than 20% higher. That get your attention?
Join the Dragonfly Capital Views Premium Membership
Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
- Premium Earnings 10-21-14
- Calling Hawaii 5-0 to Rescue the S&P 500
- Prepping to Lock Up Profits in Lifelock
- Earnings Trade Ideas for Chipotle Mexican Grill and Coca-Cola
- Top Trade Ideas for the Week October 20, 2014: Bonus Idea
- Top Trade Ideas for the Week of October 20, 2014: The Rest Premium
- Top Trade Ideas for the Week of October 20, 2014: The Rest
- Top Trade Ideas for the Week of October 20, 2014: The Best
- SPY Trends and Influencers October 18, 2014
- Macro Week in Review/Preview October 17, 2014