Chart of the Week: CECO Environmental
Hey everyone. Happy Wednesday. It’s time for our chart of the week. It’s February 18, and we’re gonna be focusing on engineering and industrial name, CECO Environment. CECO is the symbol.
So let’s take a look at his chart. It’s been in a nice uptrend since November.
And as we see here, the stock has made a nice strong move up with higher highs and higher lows. It’s built a nice upward trend channel, which we like to see as the stock is making those higher highs.
It did pull back a little bit in the middle part of November after making a low in late October. And this is where it launched that upward trend channel that I’ve just drawn in.
Relative strength has been good, making higher highs and higher lows. It is a little bit overbought right now, so it could pull back a little bit, but we think that this stock has got some room to go. I think it’s got some legs to get up to about $100. Stock’s about $77 and change right now. So we’re talking about a 22-23% move up from this area to get to $100. Not too bad!
But when you consider the stock is already up about 24% through the year already, that’s a nice move for an industrial engineering type of a company.
Take a look at the on-balance volume at the bottom over here. We can see the higher highs and higher lows in this indicator.
Now the on-balance volume tells you that on the up days, there’s a lot more volume coming in than on the down days, where there’s a lower volume. So it’s an accumulation of the volume trends over the past several days. And we can see that that’s very positive.
And finally we have a buy signal crossover on the MACD, which came in earlier this month. Notice the last time we had a crossover buy signal was early January. The stock ran up about 22% off of that buy signal.
So, good things for CECO coming up. It’s been performing much better than the rest of the market, certainly since November. So take a look at this one. CECO is the symbol.
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