This Company is Everywhere and Going Higher! Timken in 3 Timeframes

Like the air we breathe around us, this company is everywhere you look. The Timken Company (Ticker: TKR) of Canton Ohio, makes bearings, transmissions, motion control systems and other things for just about anything that moves. Wow and practically in my backyard. But what about the price action? Actually it looks pretty great in all timeframes. Let’s take a look.

Timken Monthly Chart

Starting from the longest timeframe, this monthly chart, TKR has been in a wide channel between long term support at 11.00 and long term resistance at 35.00. A $24.00 channel that lasted from mid 1997 until it broke out above it in September 2010. Since then it has been running higher. During this run it has pulled all of the Simple Moving Averages (SMA’s) higher. The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicator have been steadily rising during this time and show no signs of letting up. Despite the stock being at 51.74, almost 50% above the break out level, technical analysis would suggest it still has more than $7 of upside. That Measured Move (MM) comes from adding the width of the channel to the break out level of 35 and coming up with a target on this monthly scale of at least 59. Almost 14% higher, but what about the weekly timeframe.

Timken Weekly Chart

Zooming in now to a shorter 3 year view and a weekly timeframe gives an equally rosy picture. Using Elliott Wave Principles and starting from the September 2008 high the move to the low in March 2009 constituted a A-B-C corrective wave, Since that low, TKR has been advancing through another impulse wave higher. It is currently starting sub-wave 5 within impulse wave III. Based on Elliott Principles this 5th wave will extend at least to 66.50, before giving way to a corrective wave 4. Even brighter that the monthly picture. What about the daily timeframe.

Timken Daily Chart

Now zooming in even further to just the last 10 months and on a daily timeframe, explains why now is the time at look at this stock. Even with the very rosy outlooks of the weekly and monthly timeframes if we can get in at a good price on the daily timeframe then it is all the better. This daily chart shows that TKR has found some short term resistance at 52 over the last 3 weeks. After a pullback to the 50 day SMA in late January it is now heading to test that resistance again. Notice that from the move higher off of 31.80 in September to the top at 52 is about $20. If TKR can get through 52 then the price target on a MM would be about 68. The RSI is rising and still has a long way to go before reaching an overbought condition and the MACD has just turned positive and printed a bullish cross. With the SMA’s also sloping up the technical frame work for TKR to break 52 is there.

The monthly suggests a rise to at least 59. The weekly chart a rise to at least 66.50 and the daily chart a move higher to 68. It just keeps getting better. Keep an eye on this gem an consider adding it to the longer term portfolio. Trade’m well.

(As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

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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.

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