Yesterday, we looked at a Daily Price chart of Brown & Brown Inc., and noted that the stock had been on a bullish run since January.
Today’s Chart of the Day is a Daily Price chart for Owens Corning Inc. (NYSE: OC).
Owens Corning and its subsidiaries produce and sell glass fiber reinforcements and other materials for composites, as well as residential, commercial, and industrial building materials worldwide.
Now, below is a 10-Month Simple moving Average chart for Owens Corning Inc.
At the end of June, the OC 1-Month moving-average crossed above the 10-Month Simple Moving Average (SMA) indicating OC is on a PowerTrend ‘buy’ signal (circled).
And as we expected…
After the ‘buy’ signal, prices continued to climb.
If you had purchased OC shares when the PowerTrend ‘buy’ signal occurred for the stock back in June, when the stock was around $58.20, you’d be up 15.44% by now.
Not a bad profit for a less-than-5-month hold of a major industrial goods company.
Now, as you can see, the 1-Month moving-average is still above the 10-Month SMA.
That means the bullish trend is still in play!
As long as the 1-Month price remains above the 10-Month SMA, the stock is more likely to keep trading at new highs in the coming days and weeks.
We’ll be paying close attention to this stock as it continues to trend upward so we’ll know the moment the market conditions shift and the stock begins to trend downward.
Editor, Chart Of The Day