ITT Corporation designs and manufactures engineered critical
components and customized technology solutions for the energy,
transportation, and industrial markets. The company operates in four
segments: Industrial Process, Motion Technologies, Interconnect
Solutions, and Control Technologies. The Industrial Process segment
manufactures industrial pumps, valves, and related equipment comprising
vertical, axial flow, multi-stage, and other pumps; twin screw pumps,
multiphase boosting system pumps, and progressive cavity pumps; and
process valves, including industrial knife-gate and sanitary diaphragm
valves. The Motion Technologies segment manufactures engineered and
durable components comprising brake pads, shock absorbers, and damping
technologies for the transportation industry. The Interconnect Solutions
segment designs and manufactures engineered connectors and cable
assemblies for applications in harsh environments. The Control
Technologies segment provides engineered aerospace components and
industrial products consisting of fuel management, actuation, and noise
absorption components in the aerospace market, as well as a range of
products that manage motion and absorb energy in various industrial
markets.
To review a current H&S pattern on ITT’s stock, please take a
look at the 1-year chart of ITT (ITT Corporation) below with my added
notations:
ITT had rallied from a low of $25 last February to a peak of $45 just
last month. Over the last 3 months the stock had created a very
important “neckline” of support at $40 (blue). Above the neckline you
will notice the H&S pattern itself (red). Confirmation of the
H&S occurred earlier in the week when ITT broke its $40 “neckline”.
So, the stock should be moving lower overall from here.
The Tale of the Tape: ITT confirmed a head &
shoulders pattern. A short trade could be entered on any rallies up to
or near the $40 area. A significant break back above $40 could negate
the forecast for a move lower.
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