MLI (Mueller Industries) - Swing Long Setup🎯 Ticker: MLI (NYSE)
📈 Type: Swing Long
⏰ Timeframe: Daily & 4H
📊 Technical Rationale:
MLI is exhibiting a powerful and consistent bullish technical structure.
Trend: The daily chart is in a confirmed uptrend, trading firmly above its key moving averages (SMA 20 & 50).
Momentum: The RSI is strong but not excessively overbought, indicating healthy momentum with room to run.
Consensus: A rare alignment of "Buy" signals across all three major timeframes (Daily, 4H, and 1H), signaling broad-based strength and increasing the probability of a successful move.
💡 Fundamental Catalyst:
The technical breakout is supported by a solid fundamental backdrop, creating a high-conviction setup.
Financial Health: MLI boasts a perfect 10/10 Debt Health Score.
Debt Profile: It has ZERO debt on its balance sheet, with an exceptional interest coverage ratio, significantly reducing financial risk.
Growth & Valuation: The company shows moderate revenue growth and is considered fairly valued based on its P/E ratio, providing a stable foundation without overvaluation concerns.
This combination of technical momentum and fundamental strength is often a precursor to a significant price advance.
⚡ Trade Execution:
Entry: $\textcolor{green}{107.68}$ (Market price on confirmation)
Stop Loss: $\textcolor{red}{101.80}$
Take Profit: $\textcolor{green}{119.44}$
📉 Risk Management:
The Stop Loss is strategically placed below the strong support of the 50-day SMA and a key consolidation zone.
The Take Profit target is set at the next projected resistance level, offering a superior risk-reward ratio.
Risk/Reward Ratio: ~1:2.1
✅ Summary:
Metric Details
Direction Long
Entry $\textcolor{green}{107.68}$
Stop Loss $\textcolor{red}{101.80}$
Take Profit $\textcolor{green}{119.44}$
R/R Ratio 1:2.1
Debt Health 10/10 (Perfect)
Conclusion: A high-probability swing trade where strong technical momentum is fueled by a rock-solid fundamental foundation, particularly its impeccable debt-free balance sheet.
Good luck, and trade safe!
Disclaimer: This is not financial advice. Always do your own research and manage your risk appropriately.
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