Seeking Fortune in Fortune Brands
- Posted by Greg Harmon
- on August 29th, 2016
Wouldn’t it be great if a fortune teller could tell you that you were going to get rich in the stock market. And it was real? Well maybe the next best thing is about to happen if you are prepared to trade Fortune Brands ($FBHS) stock. The stock of the maker of Masterlock, Moen, Craftsman and Thomasville is about to make move. Now you need the fortune teller to tell you which way.
The chart below shows the timing. With the Bollinger Bands® squeezing following a 1 month consolidation a move is very close. Now, I am not a fortune teller, but I am a market technician (actually worse, LOL) so I can try to help with the direction.
The stock went through a strong move higher from a February low to a two humped consolidation April through July. The break above that would give a target to the upside to 70. It has not reached there yet. There is also the $4 run up from the July 22nd pullback to the 50 day SMA up to the current consolidation. A break of this to the upside gives another target to 68.
Notice that the price is above all off the SMA’s and they are rising. That is a positive. The momentum indicators are split with the RSI in the bullish zone and rising. The MACD has been pulling back , but it is turning towards the bullish side. The MACD is about to cross the signal line and is leveling in the pullback in positive territory.
All of these data points together suggest a break to the upside is the easier path. Now I need to work on getting a crystal ball…….
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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 since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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