Furnace and air conditioner producer Carrier Global (CARR) recently returned to the Green Favored Zone of the SIA S&P 500 Report from a brief dip into the yellow zone and continues to trend upward in the rankings. On Friday, the shares finished in 63rd place, up 4 spots on the day and up 64 spots in the last month.
After being spun out of United Technologies just over a year ago, Carrier Global (CARR) shares steadily advanced for eight months until reaching $40.00 in early November. The shares then spent four months consolidating their initial gains between $34.00 and $42.00 which was not unusual. In the last month, the shares have resumed their upward course, steadily building on a breakout over $42.00 and advancing to new highs.
Based on a measured move from the recent consolidation range, next potential upside resistance on trend appears near the $50.00 round number. Initial support appears near the $42.00 breakout point, with more possible near $40.00 where a round number and the 50-day average converge.
Carrier Global (CARR) shares have been under accumulation since last May, establishing an upward trend of higher column lows and bullish pattern completions. Last month, the shares staged a bearish Triple Bottom breakdown which turned out to be false and was quickly trumped by bullish Double Top and Spread Double Top breakouts, the latest to a new high, signaling the start of a new upleg.
In addition to the $50.00 round number, horizontal and vertical counts suggest potential upside resistance tests near $48.50, $51.45 and $55.75 on trend. Initial downside support appears near $40.60 based on a 3-box reversal, and then the $40.00 round number.
With a perfect SMAX score of 10, CARR is exhibiting near-term strength against the asset classes.
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