The electrical parts industry group is a component of the larger industrials sector. Both have improved lately, with the industrial sector grinding higher along its ascending 9/20ema. In addition, the electrical parts manufacturing industry group, as ranked by Investors Business Daily (IBD), is steadily moving up the list. It is currently at 70, up from 130 during the previous 3 week period.
Electrical Component Manufacturing
TTMI sports a 98 Composite Rating (IBD) which means it is outperforming 98 percent of its competitors in the group. The company produced an EPS % change of 164% compared to the previous reporting period, while steadily driving growth in sales.
Technically, the stock is now at a buy point, in this flat cup and handle base. YOU could also classify this as a “base on base” pattern, as the recent break above 17.27 consolidates in this narrow horizontal range noted on the chart. WIth RSI and MACD rising, we will consider adding to our existing position, should the stock break out over the next few days. Adding to the momentum present in MACD, we see Bollinger Bands are starting to open.
The 60-minute chart also suggests price action might continue higher along its current path.
As with any winning stock pick, volume needs to be present in order to push the stock higher. TTMI needs a boost to kick start its next move higher, so we are watching for above average to confirm the next leg. We will monitor price action for a “LIVE” trade during the daily Livestream broadcast.
Pre-market – Bullish
Netflix reported better than expected earnings and guidance. The stock is currently trading North of 176.50, while futures remain red to start the day. Goldman and Bank of America are reporting this morning.