Wednesday, April 10, 2013

Pentair, Ltd. (NYSE: PNR)

Pentair Ltd. delivers products, services, and solutions for water and other fluids, thermal management, and equipment protection in the United States, Europe, Asia, and other regions. Its Water & Fluid Solutions segment designs, manufactures, markets, and services water management and fluid processing products and solutions, including pumps, valves, and pipes for water transmission applications. The company's Valves & Controls segment designs, manufactures, markets, and services valves, fittings, automation and controls, and actuators. Its products, services, and solutions address various applications in the general process, oil and gas, chemical, petrochemical, power generation, mining, food and beverage, pulp and paper, wastewater, commercial irrigation, and mining industries. Pentair's Technical Solutions segment designs, manufactures, and markets products that guard and protect sensitive electronics and electronic equipment; and heat management solutions to provide thermal protection to temperature sensitive fluid applications. Its products include mild steel, stainless steel, aluminum, and non-metallic enclosures. This segment serves electrical distributors, data center contractors, original equipment manufacturers, contractors of greenfield developments, and maintenance contractors.
Please take a look at the 1 yr. chart of PNR (Pentair, Ltd.) that I have shown below with my added notations:
1 yr. chart of PNR (Pentair, Ltd.) PNR has formed a small channel with a slight uptrend to it over the last (3) months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to a channel, I always tell my students that any (3) points can start the channel, but it's the 4th test and beyond that confirm it. You can see that PNR has multiple test points between the channel resistance (red) and channel support (blue). Following the PNR channel can provide you with both long and short trading opportunities.
The Tale of the Tape: PNR has formed a common chart pattern know as a channel, in this case, an up-channel. A long opportunity could be entered on a pullback to the channel support, which at this point seems to be around $51. Short trades could be entered at channel resistance OR if PNR were to break below the channel support.
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