Release the brakes & hit the gas in Wabtec

• Posted by Greg Harmon
• on April 16th, 2015

Bugs Bunny was a favorite in my house when I was a kid. And I will always remember this episode when, after a series of bizarre events Bugs Bunny is left in the cockpit of a plane heading for the ground. Luckily after reading about how to fly a plane he finds the air brakes and pulls back hard on the lever just before the plane hits the ground. It stops of course, defying gravity, and the show ends.

This is not possible of course, but air brakes are a real thing. And Westinghouse Air Brake Technologies Corporation (Wabtec, ticker $WAB) quite possibly was consulted for the cartoon. Wabtec does not make products that help you defy gravity, but it looks like their stock price is about to do just that.

The chart above shows a move higher in October to a rounded consolidation through February and a move higher toward the end of the month. Since then it has consolidated in an ascending triangle against resistance at 96.80. The series of higher lows against that resistance are building power. And with the Bollinger Bands®tight and now opening up a move could happen anytime.

To the upside, it would carry a target of 105.55. The momentum indicators are supportive of a move higher as well. The RSI is in the bullish zone while the MACD is about to cross up. Get ready to take your foot off of the brakes and buy this stock as it moves higher.

Get my new ebook, Markets for 2015 and Beyond, a long term forecast with all proceeds going to charity.

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through March 2015 Expiry and sign up here

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