Chart of the Day: Rockwell Automation (ROK)

Rockwell Automation (ROK) is an automation company that is the successor to Rockwell International. The company operates through two segments, architecture and software, and control products and solutions…

Rockwell Automation (ROK) is considered an essential business as it is supporting pharmaceutical and medical devices to scale up operations during the pandemic. Future demand for the company will be driven by growth in emerging markets.

Take a look at the 1-year chart of ROK below with added notations:

 Chart of ROK provided by TradingView

On two separate occasions over the past few months, ROK hit resistance at the $230 level (green), which also was the 52-week high. Now that the stock has broken above that resistance, higher prices should follow, and $230 will likely become the new support.

The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A failure to hold $230 could negate the expectations for a higher move.

Have a good trading day!  

Good luck!

Christian Tharp, CMT

@cmtstockcoach