The Greedy Trader Weekly Analysis
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Weekly Pattern:Broadening Ascending Wedge
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Chart Analysis and Chart Pattern Recognition – Broadening Formations
Broadening Formations, including Broadening Ascending Wedge, present inverted triangle patterns. They start with narrow fluctuations, and then widen out between diverging boundary lines. The pattern, where one of the boundary lines is horizontal, is referred to as a right-angled formation. Broadening formations usually mark the reversal when confirmed by other technical indicators.
Broadening formations Screening page presents a list of stocks forming Broadening formation Pattern.
Tips:
# 1
As a reversal formation, Broadening formation Pattern appears in a mature trend, characterized by overbought/oversold long-term and short-term indicators. This situation usually generates divergence on long-term indicators.
# 2 For the best results, chart patterns and trend resistance support should be considered together with other technical analysis signals and technical trading techniques.
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CUMMINS INC (CMI)

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Summary:
Weekly :Overbought sectorWilliams' Percentage Range and Lane's Stochastic are overboughtLane's Stochastic bearish divergence
Daily :Stochastic signal line moved below overbought areaThe price has fallen below the Parabolic SAR
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It was a fifth consecutive positive week for the CUMMINS INC (CMI). During the week, the CMI gained 5.02 points, or 2.67%, and closed at 193.26 on Friday, July 31, 2020. Weekly volume was -23% below average.

CMI is a member of Industrials Sector. Industrials is the second most overbought sector. Sector/industry rotation is considered a proven strategy to beat the market. Use the following links to find overbought/oversold technical indicators by Sector or by Industry.

Long-term trend: [See CMI long-term trend chart]
A long-term uptrend had started on October 9, 2002 at 4.90 and reached 204.98 on July 28, 2020. CMI gained -200.08 points, or -4083.27%, in 928 weeks. The chart has formed a Broadening Ascending Wedge chart pattern. The trend support level is at 103.89 and resistance is at 230.78. A Broadening Ascending Wedge pattern is considered to be a reversal formation. It usually appears in a mature trend, characterized by overbought/oversold long-term and short-term indicators, and often generates divergence on long-term indicators. Use the following link to access a Broadening Ascending Wedge chart pattern help, or use a Technical Stock Screener to see the list of stocks with Broadening Ascending Wedge pattern in a long-term trend.

Medium-term trend: [See CMI medium-term trend chart]
A medium-term uptrend had started on March 23, 2020 at 101.03 and reached 204.98 on July 28, 2020. CMI gained -103.95 points, or -102.89%, in 18 weeks. The chart has formed a Rising Channel chart pattern. The trend support level is at 182.20 and resistance is at 208.82. A Rising Channel represents price movement contained between parallel lower (support) and upper (resistance) trend lines. Trading Channeling stocks is one of the most reliable and accurate trading techniques that provide traders with precise entry and exit points as well as stop-losses and take-profit recommendations. Use the following link to access a Rising Channel chart pattern help, or use a Technical Stock Screener to see the list of stocks with Rising Channel pattern in a medium-term trend.

Weekly Technical Indicators: [See CMI weekly technical indicators chart]
Weekly Williams' Percentage Range and Lane's Stochastic are overbought. Use the Technical Stock Screener to see the list of stocks with overbought weekly Williams' Percentage Range and Lane's Stochastic. Weekly Lane's Stochastic has bearish divergence. Use the following links to access the Lane's Stochastic help, or use the Technical Stock Screener to see the list of stocks with weekly Lane's Stochastic bearish divergence. The divergence between price and indicator is considering one of the most important buy/sell stocks trading signal. Oscillators are designed to signal a possible trend reversal. They can act as alerts and should be taken in conjunction with other technical analysis tools. Oscillators can be used to confirm other technical signals. Use the following links to access Lane's Stochastic and Williams' Percentage Range help.

The weekly MACD line is above its signal line since May 1, 2020. This is an indication that the medium-term trend is up. Use the following link to access a MACD help.

Short-term trend: [See CMI short-term trend chart]
A short-term uptrend had started on June 25, 2020 at 163.66 and reached 204.98 on July 28, 2020. CMI gained -41.32 points, or -25.25%, in 33 days. The price is now at the 28.36% retracement level.

Daily Technical Indicators: [See CMI daily technical indicators chart]
Daily technical indicators are neutral. During the last week, daily Lane's Stochastic signal line (%D) has moved below overbought area. Such crossover is considered a bearish signal.

The daily MACD line is above its signal line since July 13, 2020. This is an indication that the short-term trend is up. The distance between MACD and the signal line is low and getting smaller. It indicates that the current short-term uptrend is getting weak.

During the last week, the price has fallen below the Parabolic SAR (stop and reversal). A Parabolic SAR above the price is a bearish signal, and it indicates that momentum is likely to remain in the downward direction. A Parabolic SAR is used as a trailing stop loss for long or short positions. It works best during strong trending periods. Use the following links to access Parabolic SAR Help, or use the Technical Stock Screener to see the list of stocks with the Parabolic SAR close to the price level.

Daily Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 73.01
Williams' Percentage Range (W%R) 34.10
Lane's Stochastic (%D-Slow) 67.48
Greed/Fear Indicator (GFI) 68.79
Moving Average Converg./Diverg. (MACD) 5.18
Weekly Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 73.96
Williams' Percentage Range (W%R) 11.00
Overbought
Lane's Stochastic (%D-Slow) 81.61
Overbought Bearish
Greed/Fear Indicator (GFI) 77.05
Moving Average Converg./Diverg. (MACD) 2.57
Trading Signals
Description Value Chart
Yearly Trendline Resistance 230.78
Quarterly Trendline Resistance 208.82
Parabolic System 204.57
Upper Bollinger Band 201.45
Weekly Stochastic Crossing 198.25
Daily Stochastic Crossing 197.39
Price 193.26
Monthly Trendline Resistance 188.89
Monthly Trendline Support 184.83
20 Day Moving Average 184.13
Quarterly Trendline Support 182.20
50 Day Moving Average 176.35
Lower Bollinger Band 169.49
Sector and Industry
Description Name Rank
Sector Industrials 8
Industry Industrial Machinery 90
Daily Trend
Description Value
Direction Down
Chart Pattern DownTrend
High 204.98
High Date 07/28/2020
Low 189.93
Low Date 07/31/2020
Weekly Trend
Monthly Trend
Description Value
Direction Up
Chart Pattern Uptrend
Status
Resistance
Support
Low 163.66
Low Date 06/25/2020
High 204.98
High Date 07/28/2020
Description Value
Direction Up
Chart Pattern Rising Wedge
Status Broken Resistance
Resistance 188.89
Support 184.83
Low 160.61
Low Date 06/15/2020
High 204.98
High Date 07/28/2020
Quarterly Trend
Yearly Trend
Description Value
Direction Up
Chart Pattern Rising Channel
Status Valid
Resistance 208.82
Support 182.20
Low 101.03
Low Date 03/23/2020
High 204.98
High Date 07/28/2020
Description Value
Direction Up
Chart Pattern Broadening Ascending Wedge
Status Valid
Resistance 230.78
Support 103.89
Low 4.90
Low Date 10/09/2002
High 204.98
High Date 07/28/2020
Warning: TheGreedyTrader.com presents weekly analysis. Technical indicators and trend parameters are calculated for the close of business day indicated on the top right corner of the screen.

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