The Greedy Trader Weekly Analysis
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Downtrend Broken Resistance

Downtrend Broken Resistance stock alert presents a technical analysis stock market picking technique based on combination of technical indicators, stock trend analysis, trend following indicators and pattern recognition. Downtrend broken resistance stock market alert is a trend trading warning signal. It is a confirmation that long term downtrend reversal is completed and a new uptrend is establiched.

Unlike other alerts, broken resistance is not a buy/sell signal. It is rather warning signal that trend direction has changed. For entry point it is usually better to wait for pull back and retest of resistance line. This point is considered as a second chance to participate in downtrend reversal.

Downtrend Broken Resist.

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- 10/16/2026 -
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A.O. Smith (AOS) Technical Analysis

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Summary:
Weekly :Lane's Stochastic is oversoldBroken trend resistance line
Daily :Williams' Percentage Range and Lane's Stochastic are overboughtPrice is close to the 50 Day Moving AverageThe price has risen above the Parabolic SARPrice is near the Fibonacci 23.6% retracement levelThe price moved above the moving average in the center of the Bollinger Bands
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It was a first positive week for the A.O. Smith (AOS). During the week, the AOS gained 2.84 points, or 5.04%, and closed at 59.22 on Friday, October 16, 2026. It was the best weekly gain since August 7, 2026. Weekly volume was 8% above average.

Long-term trend: [See AOS long-term trend chart]
A long-term downtrend had started on July 18, 2024 at 92.45 and reached 54.16 on May 20, 2026. AOS lost 38.29 points, or 41.42%, in 95 weeks. The price is now at the 13.21% retracement level.

Medium-term trend: [See AOS medium-term trend chart]
A medium-term downtrend had started on July 30, 2026 at 64.77 and reached 54.55 on October 7, 2026. AOS lost 10.22 points, or 15.78%, in 9 weeks. The chart has formed a Falling Wedge chart pattern. The downtrend resistance line (54.28) is broken. Usually a broken resistance is considered to be a long-term bullish signal, but since daily indicators are overbought a short-term pull back is possible. AOS may retest the broken resistance line. It is considered to be a support line now. Use the following links to access Trend Support/Resistance Help, or use the Technical Stock Screener to see the list of stocks with broken trend resistance line in a medium-term trend.

Weekly Technical Indicators: [See AOS weekly technical indicators chart]
Weekly Lane's Stochastic is oversold. Use the Technical Stock Screener to see the list of stocks with weekly oversold Lane's Stochastic. 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 link to access Lane's Stochastic help.

The weekly MACD line is below its signal line since September 25, 2026. This is an indication that the medium-term trend is down. The distance between MACD and the signal line is low and getting smaller. It indicates that the current medium-term downtrend is getting weak. Use the following link to access a MACD help.

Short-term trend: [See AOS short-term trend chart]
A short-term uptrend had started on October 7, 2026 at 54.55 and reached 60.79 on October 16, 2026. AOS gained -6.24 points, or -11.44%, in 9 days. Price is near the Fibonacci 23.6% retracement level. The Fibonacci retracement level is considered a support/resistance level.

Daily Technical Indicators: [See AOS daily technical indicators chart]
Daily Williams' Percentage Range and Lane's Stochastic are overbought. Use the Technical Stock Screener to see the list of stocks with overbought daily Williams' Percentage Range and Lane's Stochastic. Use the following link to access Williams' Percentage Range help.

The daily MACD line is above its signal line since October 8, 2026. This is an indication that the short-term trend is up.

During the last week, the price has risen above the Parabolic SAR (stop and reversal). A Parabolic SAR below the price is a bullish signal, and it indicates that momentum is likely to remain in the upward 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.

During the last week, the price has moved above the moving average in the center of the Bollinger Bands. The Bollinger Bands are often used with a non-oscillator indicator like chart patterns or a trendline. The signals are considered more reliable if these indicators confirm the recommendation of the Bollinger Bands. Use the following links to access the Bollinger Bands Help, or use the Technical Stock Screener to see the list of stocks with the price above the Upper Bollinger Band or below the Lower Bollinger Band.

Price is close to the 50 Day Moving Average. While daily technical indicators are overbought, the 50 Day Moving Average is considered a resistance level. The moving average crossover signals work better when the stock develops a strong trend, but they are ineffective when the stock is in a trading range. Moving average crossover systems can be effective, but should be used in conjunction with trend patterns, momentum indicators, candlesticks and other aspects of technical analysis. Use the following links to access Moving Average Crossover trading technique, or use the Technical Stock Screener to see the list of stocks with the Moving Average close to the price level.

Daily Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 54.62
Williams' Percentage Range (W%R) 16.70
Overbought
Lane's Stochastic (%D-Slow) 83.69
Overbought
Greed/Fear Indicator (GFI) 73.87
Moving Average Converg./Diverg. (MACD) -0.54
Weekly Oscillators
Description Value Status Divergence Chart
Relative Strength Index (RSI) 47.45
Williams' Percentage Range (W%R) 49.10
Lane's Stochastic (%D-Slow) 18.29
Oversold
Greed/Fear Indicator (GFI) 39.63
Moving Average Converg./Diverg. (MACD) -1.83
Trading Signals
Description Value Chart
Daily Stochastic Crossing 60.20
Upper Bollinger Band 59.80
50 Day Moving Average 59.22
Price 59.22
20 Day Moving Average 57.43
Monthly Trendline Resistance 56.73
Weekly Stochastic Crossing 56.56
Lower Bollinger Band 55.70
Parabolic System 55.14
Monthly Trendline Support 54.28
Sector and Industry
Description Name Rank
Sector Industrials 3
Industry Building Products 62
Daily Trend
Description Value
Direction Up
Chart Pattern Uptrend
Low 55.88
Low Date 10/12/2026
High 60.79
High Date 10/16/2026
Weekly Trend
Monthly Trend
Description Value
Direction Up
Chart Pattern Uptrend
Status
Resistance
Support
Low 54.55
Low Date 10/07/2026
High 60.79
High Date 10/16/2026
Description Value
Direction Down
Chart Pattern Falling Wedge
Status Broken Resistance
Resistance 56.73
Support 54.28
High 64.77
High Date 07/30/2026
Low 54.55
Low Date 10/07/2026
Quarterly Trend
Yearly Trend
Description Value
Direction Down
Chart Pattern DownTrend
Status
Resistance
Support
High 81.87
High Date 02/12/2026
Low 54.16
Low Date 05/20/2026
Description Value
Direction Down
Chart Pattern DownTrend
Status
Resistance
Support
High 92.45
High Date 07/18/2024
Low 54.16
Low Date 05/20/2026
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.