Bullish potential on Stanley Black & Decker Inc.
A technical look at the stock
stock
Stanley Black & Decker (SWK-N, Monday’s close US$99.37) experienced a sharp decline from US$225.00 in May, 2021, to US$70.24 in October, 2022 (A–B), while trading below its falling 40-week moving average (40wMA). The stock then settled into a trading range mostly between US$75 and US$103, followed by a second range between US$63 and US$92 (dashed lines). This price action produced a bullish base pattern known as a Delayed Ending. The recent rise above the second part of the base suggests a breakout and the start of a new up-leg (C) and the recent pullback toward the 40wMA provides a good entry level. For now, the initial upside target is US$110; a sustained rise above US$110–111 would signal the potential for higher targets.
There is solid support near US$87–88, but only a sustained decline below the 40wMA, currently near US$84-85, would turn the outlook negative.
The initial upside target is US$110. A sustained rise above US$110–111 would signal Point & Figure targets of US$125 and US$135. The large Delayed Ending pattern (dashed lines) supports the potential for higher targets.
Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart, courtesy of www.LSEG.com