Curtiss-Wright Corporation (CW) – correction and back down?

ISIN: US2315611010

The Curtiss-Wright Corp. is an American manufacturer of drive, valve and fluid systems with its headquarters in Roseland (New Jersey). Beyond that, it offers an extensive range of metalworking and heat treatments. Its customers come from the fields of aeronautical engineering, defense technology and nuclear technology.
In the following analysis, we will examine the stock of the company from a chart-oriented point of view.

 

Review (daily chart)

Towards the end of March, the price was able to exit the sideways phase, which had persisted since January, in the trend direction with considerable strength, and most recently, a confirmed downward trend has established itself. The stock just corrected around the 50%, making it a potential short candidate with speculation on the continuation of the downward trend as soon as corresponding entry signals form.

 

CW daily chart with resistance and targets

CW daily chart with resistance and targets

 

Outlook (hourly chart)

In the hourly chart, we can see the correction that is currently in motion, which has yet to develop in our preferred trading direction. For a short entry, we should wait for the formation of a signal, e.g. in the form of a P2, and place the stop loss above the last P3 (depicted in green).
Alternatively, and with the advantage of a more convenient stop, one can also practise trading from out of the correction or the formation of a reversal candle at a prominent point.

The targets are located in the areas around $83.00 and $78.50 (see green zones in daily chart), which makes the stock even more attractive for short entries. If the price exceeds the last significant high at $95.00 by a lot, we should refrain from pursuing the short scenario for the moment (daily chart depicted in red).

 

CW hourly chart with outlook

CW hourly chart with outlook

 

Before trading, one should take news in the environment and from the company into account. Similarly, one should observe the development of the overall market.

 

 

 

Neither the author nor our company is invested in the securities and underlyings discussed at the time of publishing this analysis.

Disclaimer:

Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.

Curtiss-Wright Corporation (CW) – correction and back down?
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