Yesterday, we looked at a Daily Price Chart for RingCentral Inc., noting the stock’s On Balance Volume (OBV) line is sloping up. Thereby validating the bullish trend.
Today’s chart is for Carrier Global Corp. (CARR).
Carrier Global Corp. provides heating, ventilating, air conditioning (HVAC), refrigeration, fire, security, and building automation technologies worldwide. It operates through three segments: HVAC, Refrigeration, and Fire & Security.
The Daily Price Chart below shows that CARR has traded in a clear bullish pattern of higher highs and higher lows since mid-April.
Track the Price Chart from lower left to the upper right…
This bullish trading pattern points to a further advance.
You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.
But it’s important to note that strong stock rallies have pullbacks along the way.
These pullbacks present a buying opportunity for us.
Purchasing CARR after a 3% to 5% price pullback has provided a good entry point for the stock during this run and has produced a healthy return.
We’ll keep watching CARR as it tops its previous highs and waiting for price pullbacks.
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
The Power of Options
On July 15, we highlighted Apple, Inc. (AAPL), noting that AAPL’s 50-Day Exponential Moving Average (EMA) is trading above the 100-Day EMA.
If you happened to have purchased AAPL shares on that day, you’d already be up 12.9%.
But… if you had purchased the right option contract, you would be up 151.7% in just three weeks’ time!
That’s the power of options.
Editor, Chart Of The Day