Conclusion, Investment Implications, Strategy
Ball Corporation (BLL) has recently resumed its March advance while confirming a major bullish trend change, targeting an additional 12% rise to $83.50 per share. This is an Asbury Momentum idea.
Analysis and Rationale
Ball Corporation (BLL) supplies aluminum packaging products to the beverage, personal care, automotive, paint, healthcare, and household products industries. It operates in four segments: Beverage Packaging, North and Central America; Beverage Packaging, South America; Beverage Packaging, Europe; and Aerospace. The company manufactures and sells aluminum beverage containers to fillers of carbonated soft drinks, beer, energy drinks, and other beverages. It also develops spacecraft, sensors and instruments, radio frequency systems, and other technologies and products for the civil, commercial, and national security aerospace markets, as well as offers defense hardware, antenna and video tactical solutions, civil and operational space hardware, and systems engineering services. The company was founded in 1880 and is headquartered in Broomfield, Colorado.
Chart 1 below plots BLL daily since March, showing it is in the midst of resuming its late March advance following two months of sideways investor indecision as it negotiated its 200-day moving average (major trend proxy). A sustained rise above the upper boundary of the indecision area, currently at $73.71, would confirm this and target an additional 12% rise to $83.50 per share.
Chart 1
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $72.52 area, a long entry price of $74.55 would provide a 1:4.4 risk/reward ratio (risking $1.00 to make $4.40) with an initial risk of 2.7%.
Table 1
Click Here for a table containing all of our current stock, ETF and index ideas.
Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.