Conclusion, Investment Implications, Strategy

Industrial Sector stock Curtis-Wright Corp (CW) is currently testing major underlying support near $135.10 amid monthly oversold conditions, setting up a potential low risk buying opportunity.  A sustained rise above the $135.27 area would target a 15% rise to $163.00.  This is an Asbury Value idea.

Analysis and Rationale

Curtiss-Wright Corporation (CW), together with its subsidiaries, provides engineered products, solutions, and services to the aerospace, defense, general industrial, and power generation markets worldwide. worldwide. It operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power.  Curtiss-Wright Corporation was founded in 1929 and is headquartered in Davidson, North Carolina.

The upper panel of Chart 1 below plots CW daily since October 2021 along with its 200-day moving average, a widely-watched major trend proxy currently at $135.10 which the stock is currently testing as major underlying support.  The lower panel plots monthly overbought/oversold conditions according to the 21-day (monthly) Stochastic oscillator.  The green highlights show that CW is currently starting to rise out of monthly oversold extremes, and that previous instances of this coincided with Tactical bottoms on Feb 7th and on Dec 1st of last year. 

These conditions suggest another similar low-risk buying opportunity now.

Chart 1

Risk/Reward

Table 1 below shows that considering a $163.00 upside target with a protective stop placed below the $135.27 area, a long entry price of $142.25 would provide a 1:3.0 risk/reward ratio (risking $1.00 to make $3.00) with an initial risk of 4.9%.

Table 1


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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.