United Technologies Inc. UTX, is at an important juncture and is a great example of a stock moving back down to meet an uptrend line. It is at this moment that UTX must make a decision to either continue the uptrend it was previously in, or bust below trend and violate the previous up trend.
UTX is a DJIA stock and so usually moves with the index.
UTX breaking into the green shaded area is going to be a promising sign for the stock although I doubt that would occur on a low volume end of week day like tomorrow (Friday 5/27/2011).
Note also from the chart below that UTX is on a supportive area combined with the return back to up trend line support. So it would seem there is some potential here for UTX to maintain the current up trend.
The three most recent candlesticks show that yesterday UTX did a bullish engulfing of the day previous to yesterday. Today we simply see a small reversal hammer. So they look somewhat constructive for a mini base to move higher again.
It is going to be interesting to see what happens here. If red dotted support line holds, then I see no reason why UTX cannot build for higher ground again…