United Technologies is gaining significant traction as the session comes to a close. The stock's very promising basing action near major support over the past two weeks is paying off in a big way. UTX has been well bid since the early going and will finish the day with an impressive 2.25% gain. Investors should consider the stock a low-risk buy in the near term.
UTX reached the top band of a major support zone two weeks ago. This important area runs from $116.00 to $114.00 and includes the stock's 200-day moving average. The base here, along with a rather deeply oversold reading of late, is looking very solid. A rebound move could be quite powerful.
In the near term, UTX investors should view shares as a buy on weakness. It would take a close back below $114.00 to destroy the solid bottom now in place. As the rebound develops, a retest of the 2017 high seems well within reach.
More of What's Trending on TheStreet:
- Costco's Dramatic Crash Might End Up Yielding a Huge Payoff
- Joel Osteen Has Built a Business Empire
- Under Armour's Move Into Sneaker Business Has Been a Disaster, Jim Cramer Says
- Buying a Tesla Could Soon Become Ridiculously More Expensive
- Stocks Hold Onto Gains as Trump Talks Tax Reform