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March 01, 2023
Yesterday at a glance: the boiler maker topped out at $66.06 having ended yesterday at $65.63. However, despite early momentum, the stock gave up its gains to now trade at $65.63.
On the flip side, United States Consumer Confidence published yesterday at 15:00 UTC came out at 102.9, falling short of the 108.5 projections and continuing its decline from the previous 106 figure.
Meanwhile, United States API Weekly Crude Oil Stock came out at 6.20 million, while a consensus of analysts was expecting 440,000. United States Chicago PMI (Feb) released yesterday at 14:45 UTC with a figure of 43.6, while the previous figure was 44.3.
Trend-following investors would be interested to note that despite posting gains on yesterday, A. O. Smith Corp slid below its 5 day Simple Moving Average at $65.43 during the last session — an early indicator that a negative trend could be emerging. Price action remains constrained around the key Fibonacci level of $66 currently serving as resistance. If broken, the next Fib hurdle is expected to be $70.4. Yesterday's price action generated a Japanese candlestick pattern showing a "Bullish Engulfing" pattern — a scenario when a larger green candle engulfs a smaller red candle, at the bottom of a prevailing downtrend. Typically this is a signal of higher prices in the near term. Asset volatility analysis shows that A. O. Smith's lower Bollinger Band® is at $63.86, indicating that the market is oversold and fertile for new buyers. Technical analysis of A. O. Smith's past price action reveals multiple support and resistance levels: A. O. Smith could be slowing down soon as it approaches resistance at $66.09. Of course, crossing it might suggest further gains are ahead.
All in all, the technical analysis suggests A. O. Smith has no clear-cut direction.
A look at other industrials stocks also showed bullish price action as Boeing traded at $201.55 after closing yesterday's trading day at $200.46 (up 0.54%).
While A. O. Smith was bullish yesterday, the following industrials stocks underperformed: Union Pacific went down 2.3%, closed at $212.17. Raytheon Technologies goes down 1.08% yesterday to close at $99.16.
Also worthy of note, today at 15:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to 457,000 from the preceding figure of 7.65 million. United States Initial Jobless Claims projected to come out at 195,000 — worse than previous data of 192,000; data will be released tomorrow at 13:30 UTC.
Furthermore, the market is looking at United States ISM Manufacturing PMI (Feb) scheduled to come out today at 15:00 UTC.
Over the past 27 days, the water heater manufacturer has retreated 7.22% from a noteworthy peak of $70.4.
