Date: 01 Mar 2019

United Technologies Corporation (UTX), headquartered in Hartford, Connecticut, is a U.S. technology product manufacturer with global operations. In 2018, the company still shone with record sales, exceeding the expectations of many market participants.

Among other things, the Group operates an aviation division with the engine manufacturer Pratt & Whitney and the aircraft supplier Rockwell Collins. Rockwell Collins specialises in avionics and aircraft interiors, making United Technologies one of the world’s largest aerospace suppliers.

Various analysts yesterday raised expectations of upward momentum for some aerospace companies. This could have a positive effect on the suppliers. Hence the closer look at the shares of United Technologies.

The bullish momentum of United Technologies since the beginning of the year is very reminiscent of the US500 index. What now makes the situation at UTX so interesting is that the market has jumped above the 124.50 range with a gap upwards. If there is another gap downwards now, a so-called upper island reversal could be formed, which, as the name suggests, would represent a short reversal signal.

The MACD indicator is crossing its trigger line from up to down, which could indicate an impending correction.

The crucial area for the next days is the area around 127. If the market can defend this area and the bulls can push upwards, the next resistance could be around 133 or 138.50.

However, if the bears move in, the first support could be in the 122.50 area. If the market falls below there, the focus would shift to the 118.50 to 117 range. If the market falls lower, the situation has to be reassessed, because the overall picture could then cloud over.

 

UTX.US Daily Chart | Source ActivTrader

UTX.US Daily Chart | Source:  ActivTrader

 

Written by Daniel Schuetz, External Analyst

 

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