Painting a picture higher in PPG

• Posted by Greg Harmon
• on June 18th, 2015

PPG Industries (known to us grey haired types as Pittsburgh Plate Glass) makes a lot of boring stuff like paint, fiber glass, optical products. But the key words in that last sentence are ‘a lot’. This company has been around for 130 years and continues to grow with over $15 billion in sales.

The stock has been moving along with this growth. It split last week when it hit $230 per share and from the chart below you can see has had a steady 3 year trend higher. It is far from being a traders dream, not a momentum name. But an investor’s dream perhaps?

Many investors or traders like to wait for pullbacks to buy a stock. And some are not very charitable with these. PPG ($PPG) has been in that camp. It did give a pullback in October with the market, and if you bought that dip congratulations. But if you were too scared like many and watched it rise it is giving another opportunity right now.

After consolidating for 6 months in a range between 110 and 118 it looks ready to move higher. And the momentum indicators in this weekly chart support a push up. The RSI is bullish and rising. And the MACD is about to cross bullish as it reverses higher. The Bollinger Bands®, a measure of volatility, have tightened over the last 2 months and are now opening to the upside.

I bought some today for clients and sold July 120 Covered Calls to give it a little breathing room.

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