Conclusion, Investment Implications, Strategy

Northern Trust Corporation (NTRS) appears to be resuming its late March advance following about 10 weeks of sideways investor indecision. A sustained rise above the upper boundary of the indecision area, currently near $83.87, would target an eventual, additional 27% rise to $107.50 per share.  This is an Asbury Momentum idea.

Analysis and Rationale

Northern Trust Corporation (NTRS), a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates in two segments, Corporate & Institutional Services (C&IS) and Wealth Management. The company was founded in 1889 and is headquartered in Chicago, Illinois.

Chart 1 below plots NTRS daily since November 2019 and shows that price is currently breaking out higher from about 10 weeks of sideways investor indecision from the late March lows.  A sustained rise above the upper boundary of the indecision area, currently near $83.87, would target an eventual, additional 27% rise to $107.50 per share.

Chart 1

Table 1 below shows that, considering the aforementioned upside target and a protective stop placed below the $80.36 area, a long entry price of $84.35 would provide a 1:5.8 risk/reward ratio (risking $1.00 to make $5.8) with an initial risk of 4.7%.

Table 1


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