(Premium) April Industrials Outlook
The Industrials have lagged this year along with everything else that isn’t tech-related. On a relative basis, the sector is still in an uptrend, but it’s fallen below support from the 2021 highs. That puts the outlook in question.
Things look a lot better beneath the surface, though. The equally weighted sector has rebounded off of relative support from highs set in 2017, 2018, and 2021. The uptrend here is still very much intact.
And if we compare apples to apples and look at equally weighted industrials vs. the equally weighted S&P 500? The strength is even more apparent. There’s nothing in this chart to dissuade us from maintaining our positive outlook for the sector.
General Electric is breaking out of a huge base after being a dumpster fire for the last 4 years. We like this stock long above 90 with a target of 145.
Transdigm is another one that we’ve been keeping an eye on. It just broke out to new highs after battling the 2020 peak for most of the last 2 years. Now that it’s above 670, we want to be buying it with a target of 930, which is the 161.8% retracement from the COVID collapse.
Did you like those bases? How about this one: Howmet Aerospace is breaking out of a 10 year base. This isn’t a short-term idea (we’re looking at weekly bars on this chart), but above 40, we like it all the way up to 70. Of course, after 10 years of going nowhere, 70 could just be the start.
View the rest of our April outlook:
April Technical Market Outlook
(Premium) April FICC Outlook
(Premium) April Information Technology Outlook
(Premium) April Communication Services Outlook
(Premium) April Consumer Discretionary Outlook
(Premium) April Industrials Outlook
(Premium) April Financials Outlook
(Premium) April Energy Outlook
(Premium) April Materials Outlook
(Premium) April Health Care Outlook
(Premium) April Consumer Staples Outlook
(Premium) April Real Estate Outlook
(Premium) April Utilities Outlook
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