Textron (TXT) Breaks Above Channel
01/15/2010 12:01 am EST
Textron Inc. (TXT) - This aerospace manufacturer of Cessna business jets, Bell helicopters, and industrial equipment and components, appears to be breaking from a trading rectangle.
On December 2, at $20.50, I said, "Textron is in a powerful bull market with recent price action supported by both the 20- and 50-day moving averages, and a Stochastic that is turning up.”
"All of this suggests that the resistance line of the rectangle at $21 is about to be broken.”
"If this were to occur, the target for the trade is $25. S&P has a 'four-star buy' on the stock with a target of $25."
The breakout occurred as anticipated, and now we have another opportunity to grab Textron as it marches still higher.
My near-term target remains $25, but longer term, the stock could go as high as $40.
By Sam Collins of OptionsZone.com