Ingersoll Rand Has a High Tight PennantIndustrials have outperformed this year as investors look for the economy to rebound. Ingersoll Rand is a member of that group with some interesting chart patterns.
First, notice how IR surged to a new all-time high last week. It’s now pulled back to hold its earlier peak around $47.50 and form tight pennant. Traders may watch the 8-day exponential moving average (EMA) as a potential shorter-term trend line.
Second, IR recently formed an ascending triangle, which it’s broken to the upside.
Third, the intermediate-term trend is turning more bullish after the recent pullback. MACD is now rising and the 21-day EMA has climbed above the 50-day simple moving average (SMA).
Finally, IR formed a bullish outside candle today (despite the broader market selling off).
IR supplies products like air compressors, power tools and lifting equipment. Those stand to benefit from a stronger economy and infrastructure spending. The company has also beaten estimates the last two quarters as management harvests synergies from its recent merger. (The old Ingersoll Rand recently split off its Trane HVAC business and merged with industrial-equipment company Gardner Denver.)
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