BorgWarner Inc. - (BWA) - January 31, 2023
Automotive components producer BorgWarner (BWA) has been steadily climbing back up the rankings in the SIA S&P 500 Index Report from deep in the red zone back up into the Green Favored Zone for the first time since October of 2020. Yesterday, BWA climbed another 8 spots to 99th place and it is up 91 positions in the last month.
Since bottoming out near $31.00 back in September, BorgWarner (BWA) has been steadily recovering, establishing a new uptrend of higher lows, gapping up through $40.00 to complete a base, and completing 50 and 200-day moving average breakouts plus a bullish Golden Cross. This month, BWA has launched up off of a successful retest of its 50-day average and snapped out of a downtrend.
Initial upside resistance appears in the $49.00 to $50.00 zone where a measured move, round number and the January 2022 high cluster, followed by the June 2021 peak near $54.00. Initial support appears at a recent breakout point near $42.50.
A classic Point and Figure breakout is underway in BorgWarner (BWA) shares. Back in December, the shares completed a base with a bullish Spread Triple Top breakout, followed by a small 3-box correction, and then a second breakout, this time a Double Top that has extended into a bullish High Pole. The combination of two big breakouts with a small correction in between is known as a Bullish Catapult. Along the way the shares have also snapped a downtrend line to confirm that a new advance is underway.
Initial upside resistance may appear between previous column highs near $49.25, and the $50.00 round number. Multiple vertical and horizontal counts point toward resistance in the $52.25 to $57.75 area, a zone that also includes the May 2021 peak near $53.35. Initial support appears near $42.00 based on a common 3-box reversal.
With a perfect SMAX score of 10, BWA is exhibiting strength across the asset classes.
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