2016-07-27 16:15:00

United Technologies Corporation, #UTX [NYSE]
Industrial goods Spacecrafts, USA

Financial performance of the company:
Index – DJIA, S&P 500; Beta – 1.15;
Capitalization – 80.39 В; Return on asset – 12.90%;
Income - 7.60 B; Average volume – 7.48 М;
P/E - 22.58; ATR – 2.50.

Analytical review:

  • The company ranks the fourth on capitalization in the sector of “Industrial goods” among the issuers traded in the American stock market;
  • Company’s stocks rose over 3% after yesterday’s release of the company report for Q2 of the fiscal year 2016. It is expected that the rise in stocks will continue;
  • According to the press-release company’s revenue amounted to 14.87 billion USD against 14.69 billion USD for the same period a year ago. Net profit of the United Technologies rose from $1.67 per share to $1.82 per share, exceeding the forecast of $1.65 per share;
  • Company’s management said at the press-conference that growth in the financial performance was achieved due to the rise in sales in the company’s divisions “Pratt & Whitney” and “UTC Aerospace Systems”;
  • The company issued revised forecast for the fiscal year 2016. It is expected that the revenue will be at the level of 57-58 billion USD and net profit of UTC will reach $6.30-$6.60 per share against the previous forecast of 56-58 billion USD and $6.30-$6.60 per share respectively;.
  • UTC also plans to repurchase shares for the amount of 3 billion USD in the fiscal year of 2016, which indicates positive prospects for the company’s future development.

Summary:

  • Company’s last report has increased investors’ confidence to the company’s management. Despite pressure from the strong USD, company’s revenue and net profit have increased. The company has strong growth potential. Revised forecast for the fiscal year 2016 will contribute to company capitalization growth.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of United Technologies Corporation

Key levels:
Support level: 106.20 USD and 102.00 USD
Resistance level: 108.50 USD

Medium-term trading, H4
At the moment the issuer has broken out resistance level of 106.20 USD. If the price maintains the mirrored support level of 106.20 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 108.50 USD, 110.00 USD and 112.00 USD with the use of trailing stop.

Medium-term trading, H4
Medium-term trading, H4



Short-term trading, М15
At the moment the issuer is traded between the local support and resistance levels of 106.75/107.90 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading М15
Short-term trading, М15