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May 25, 2023A. O. Smith traders are preparing for a tough opening bell in 52 minutes time as pre-market trade emphasizes yesterday's bearish bias. The boiler maker has recovered almost all of its session losses after dipping down to $65.95 yesterday.
United States Pending Home Sales data will be released today at 14:00 UTC, with an expected improvement to 0.5%. A. O. Smith reaction to indicator information will follow.
Following a previous reading of 5 million, Crude Oil Inventories in United States released yesterday at 14:30 UTC fell short of the -920,000 figure expected by analysts with an actual reading of -12.46 million.
This down-slide takes place despite the positive US macroeconomics indicators data that was published earlier — data for United States GDP released today at 12:30 UTC is better than expected with 1.3, but worse than previous figure of 2.6.
Amid the market gloom, United States 5-Year Note Auction released yesterday at 17:00 UTC with a figure of 3.749, while the previous figure was 3.5.
A. O. Smith's notable support and resistance levels: A. O. Smith Corp could begin to recover as it approaches significant support, now 38 cents away from $65.97. Dipping below could be an indication that further losses are ahead. Concerning technical analysis and more specifically, trend indicators, the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. A. O. Smith is currently flirting with an active Fibonacci support level around $66.34. Asset volatility analysis shows that Bollinger Bands® shows an indication of recovery: the lower band is at $66.08, a low enough level to, generally, suggest that A. O. Smith is trading below its fair value.
Overall, the technical outlook suggests A. O. Smith is likely to remain muted for the immediate future, with no clear-cut direction.
A. O. Smith was not the only decliner in the industrials sector; Union Pacific closed at $191.91 (down 2.28%). United Parcel Service went down to $167.72, losing 1.22% after it closed at $169.79 yesterday. Honeywell International descends 1.6% yesterday to close at $194.97.
Looking ahead, ongoing depreciation may be prolonged as United States Core Durable Goods Orders expected to decline to 0% while its preceding data was 0.2%, data will be available tomorrow at 12:30 UTC.
Some optimism can drawn from the fact that United States Pending Home Sales is projected to outperform its last figure with 0.5%. It previously stood at -5.2%; data will be released today at 14:00 UTC.
Furthermore, United States Core PCE Price Index (MoM) (Apr) is scheduled for tomorrow at 12:30 UTC.
A. O. Smith hit a significant low of $48.58 around 7 months ago, but has since recovered 37.36%.
