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United Technologies Corporation (UTX)

UTX stock forecast: buy or sell

Close on Apr 7th, 2020
$57.76 0.00%
3 months performance
-0.62%
Published: September 27th, 2020 - 18:13

UTX stock outlook

  • United Technologies closed last April at $57.76 after scarcely changing a 0.35% breaking a streak of 4 sessions in negative.
  • The price is currently below the lower Bollinger band, which often indicates a near-term rebound that you better not try to trade

Disclaimer:
The opinions contained in this post are personal and not recommendations for you to buy or sell stocks. The author of this paper does not have any knowledge of the specific scenarios of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are posted for informational motives only

UTX stock charts

Should I buy United Technologies stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is UTX stock a buy?

Currently, United Technologies stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for UTX in the next few days, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell United Technologies stock?

When you are a novel trader and you own stock shares with some profit, it's really difficult to decide the correct moment to sell and get your benefits. Just as when we have to buy shares, deciding when is the best time to sell is not a random decision, and we must use our own trading strategy. When selling, as well as buying, detailed strategies are very easy to follow and are only applicable for selling shares you already own, not for shorting United Technologies stock

A guiding principle is that you must never mantain a trade that produces greater losses than those expected at the time of the buy. When to sell your stock must always be ruled by the stop-loss (automatic or manual)

Is it time to sell United Technologies stock?

Currently, United Technologies stock doesn't match any of our preferred sell setups, so if you own United Technologies shares and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell United Technologies stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the previous month we couldn't find any rating for United Technologies

Technical analysis

SMAs overview

Moving averages are simple tools for investors to gauge market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

UTX SMAs chart

Supports and resistances

Traders use support and resistance levels to spot price points in the stock price action that tend to act as obstacles, containing the price of shares to move up or down. Supports are levels where the price tends to stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue descending until approaching another support level. On the contrary, resistance levels are where the price tends to find a curb as it moves up. Again, the price is more liable to "rebound" at this level, and if it finally crosses this level, the price will rally more easily until it meets the next resistance

The current resistance levels are:

  • R1: $57.78 (0.03% above)
  • R2: $57.82 (0.1% above)
  • R3: $58.11 (0.61% above)
  • The current support levels are:

  • S1: $57.42 (-0.59% below)
  • S2: $57.35 (-0.71% below)
  • S3: $56.28 (-2.56% below)
  • Bollinger bands

    This is an indicator that was created in the 1980s by John Bollinger. It comprises 3 bands that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    When the price moves out of the band (above the upper line or below the lower line) it shows that the price is having a very strong momentum and therefore can correct the trend to the average. For this case, the price is beneath the upper band, which should mean a near-term rebound (at least) until it is back above the band

    UTX RSI chart

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that track price changes to detect when the share or financial asset is overbought or oversold. Like other oscillation indicators, the RSI fluctuates from 0 to 100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders

    Relative strength (RSI) crossed down the oversold line last April, with a reading of 29.66. Contrary to what many investors may think, the fact that the Relative Strength Indicator value is in the "undervaluated" zone does not in any way imply a buy signal, as stock price can descend during several weeks being in the oversold zone

    UTX RSI chart

    Earnings and financials

    United Technologies Corporation (UTX) posted EPS for the fiscal second-quarter that matched Market expectations. Quarterly EPS was $0.00 per share from an estimated $0.00. The company said turnover for this quarter was $0.00 in line with the market estimates as well.

    Compared to the same quarter last year, EPS was $2.20, so current EPS means a drop of -100%. Turnover rose a 8.35% on an annualized basis in the second-quarter, from $18.0B to $19.6B last quarter. United Technologies posted three YoY quarterly positive results, rising sales by 41.47% from $13.8B on 2017-Q1.

    UTX posts quarterly financial report on mid next October. Wall Street analysts forecast an Earnings per Share of $0.00, that is a 0% than previous quarter. Earnings reporting day has an additional risk for traders as the information disclosed can jump up or down the stock price with lower volume and not respecting your buy/stop-loss orders.

    UTX revenues and profits chart