Graco Ready To Deliver A New Uptrend
Dragonfly Capital | Aug 23, 2016 01:16AM ET
My next door neighbor left for the hospital this morning. Packed up their car and drove off to have their second baby, a boy. Because of this I have strollers and car seats on my mind. But this is about as far away from what Graco Inc (NYSE:GGG) the company in Minnesota does. They design, manufacture, and market equipment to pump, meter, mix and dispense various fluids and coatings. A real industrial company.
The stock started the year well. It moved higher off of a bottom in January to a high in April. But from there it has pulled back. In mid-July it touched the 61.8% retracement of the leg higher form January, and it has been consolidating between there and a 50% retracement ever since. The gap down in July brought the price under the 200 day SMA and now the 50 day SMA is heading down for a Death Cross, through that 200 day SMA.
A Death Cross sounds ominous, but over the past few years it has often meant a bottom is near. And that is what the rest of the chart suggests. The momentum indicators are swing back higher. The RSI is crossing the mid line and the MACD has crossed up and is rising. The Bollinger Bands® have squeezed and are now opening to the upside as price pushes on them. All it needs now is a break over resistance and into the gap as a buy signal.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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