With its countless subsidiaries, the Transdigm Group, listed on the NYSE, is one of the leading companies in the aircraft components sector. Alongside drive and control technology, it also serves the fields of security and special components. Renowned investors such as Vanguard, Capital Research and Blackrock are invested in the company. In the following paragraphs, the stock of the company will be analysed from a technical point of view.
From its high at approx. $294.00 in September of last year, the company’s stock has had to take several bitter losses. In the low from March 4th 2017, the stock registered a loss of a good 43% and was recording at $203.47. By now, the stock value has recovered a little, and corrected the last strong movement back into the area of $235.00.
Two trend sizes have formed in the short direction at the same time. Both are currently deep into the correction and could resume their downward movement once more. This chart image serves two different types of trader at once.
1.) The traders with a mid- to long-term horizon who would like to trade the big trend and use the small one for an entry.
2.) The traders with a short- to mid-term horizon; these would trade the small trend and search for an entry in a subordinate timeframe.
Currently, there is nothing interesting to see in the subordinate timeframes, but it could nevertheless be worth it to keep an eye on the stock. The scenario that has developed strengthens the downward pressure on the stock value and could lead to strong movements. For a trend trader, of course, this is a very lucrative situation. We will continue to observe the stock value and will search for opportune entries.
Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the overall market.
Disclosure of possible conflicts of interest:
At the time of publishing this analysis, the author is not invested in the securities or underlyings discussed.