Is A.O. Smith Ready to Breakout?
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A resistance level has formed in the chart of A. O. Smith Corp. If/when this level is surpassed, a breakout is expected.
A. O. Smith Corp. manufactures residential and commercial gas and electric water heaters, boilers, tanks and water treatment products. It operates through the following two segments: North America and Rest of World. The North America segment manufactures and markets comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks. The Rest of World segment comprises of China, Europe, and India; and manufactures and markets water treatment products.
Take a look at the 1-year chart of A.O. (NYSE: AOS) below with added notations:
AOS has been in a steady trend higher during the past year. However, the stock has recently struggled to get past the $72 resistance (red). That mark is also preventing the stock from hitting new highs.
AOS is dropping back, but traders should watch for a possible return to the high soon. If /when that happens, the ideal long position on the stock would be on a breakout above the $72 level, with a protective stop placed below the entry point.
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AOS shares were unchanged in premarket trading Monday. Year-to-date, AOS has gained 28.66%, versus a 14.81% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp
I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing.Is A.O. Smith Ready to Breakout? appeared first on StockNews.com