Conclusion, Investment Implications, Strategy
Whirlpool Corporation (WHR) appears to be resuming its June advance following 6 weeks of sideways investor indecision. A sustained rise above the upper boundary of the indecision area, currently at $178.95, would help confirm this and target an additional 9% rise to $200.50 per share. This is an Asbury Momentum idea.
Analysis and Rationale
Whirlpool Corporation (WHR) manufactures and markets home appliances and related products. It operates through four segments: North America; Europe, Middle East and Africa; Latin America; and Asia. The company’s principal products include refrigerators, freezers, ice makers, and refrigerator water filters; laundry appliances and related laundry accessories; cooking and other small domestic appliances; and dishwasher appliances and related accessories, as well as mixers. The company markets and distributes its products primarily under the Whirlpool, Maytag, KitchenAid, JennAir, Amana, Roper, Admiral, Affresh, Gladiator, Speed Queen, Hotpoint, Bauknecht, Indesit, Ignis, Laden, Privileg, KIC, Consul, Brastemp, Acros, Ariston, Diqua, and Royalstar brands. It sells its products to retailers, distributors, dealers, builders, and other manufacturers, as well as directly to consumers. The company was founded in 1911 and is headquartered in Benton Harbor, Michigan.
Chart 1 below plots WHR daily since June, highlighting its late September breakout higher from about 6 weeks of sideways investor indecision. A sustained rise above the upper boundary of the indecision area, currently at $178.95, would help confirm this and target an additional 9% rise to $200.50 per share.
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $178.95 area, a long entry price of $183.31 would provide a 1:3.9 risk/reward ratio (risking $1.00 to make $3.90) with an initial risk of 2.4%.
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