CMI Technical Analysis - CUMMINS INC

Technical Rating and Analysis

Taking everything into account, CMI scores 9 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CMI is showing a nice and steady performance.

The long and short term trends are both positive. This is looking good!

CMI is one of the better performing stocks in the Machinery industry, it outperforms 82% of 129 stocks in the same industry.

CMI is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.

In the last month CMI has a been trading in the 389.52 - 428.96 range, which is quite wide. It is currently trading near the high of this range.

Looking at the yearly performance, CMI did better than 85% of all other stocks. However, this overall good ranking is mostly due to the recent strong move.

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Technical Analysis

Relative Strength

ChartMill Trend Indicator

Simple Moving Average

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Weekly and Daily overview Charts

Setup Rating and Analysis

Although CMI has an excellent technical rating, it does not present a decent entry opportunity at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

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ChartMill Technical Ratings

Pocket Pivots

Bull Flags

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Support and Resistance Analysis

295.43

429.10

When analyzing the support we can see 5 important areas.

A support zone ranging from 405.98 to 406.02. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame.
A support zone ranging from 387.08 to 398.43. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames.
Support @368.15 from a trend line in the daily time frame.
Support @360.89 from a trend line in the weekly time frame.
Support @298.41 from a trend line in the weekly time frame.

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Technical Indicator Signal Analysis

The Technical Rating and Setup analysis above combine different indicators and trends in different timeframes. Individual signals from indicators may give more contradictive signals and should always be interpreted in the more global context.

Indicator	Value	Signal	Comment
ChartMill Long Term Trend Indicator	UP	POSITIVE	The long term trend for CMI is up.
ChartMill Short Term Trend Indicator	UP	POSITIVE	The short term trend for CMI is up.
ChartMill Relative Strength	85.54	POSITIVE	CMI has a high relative strength, it outperformed 85.54% off all stocks on the market.
Simple Moving Average/SMA (20)	UP	POSITIVE	The current price of CMI is above the rising SMA(20).
Simple Moving Average/SMA (50)	UP	POSITIVE	The current price of CMI is above the rising SMA(50).
Simple Moving Average/SMA (200)	UP	POSITIVE	The current price of CMI is above the rising SMA(200).
Relative Strength Index/RSI (14)	69.41	NEUTRAL	The RSI value for CMI is a neutral value.
Moving Average Convergence Divergence/MACD (12, 26, 9)	1.09	POSITIVE	The MACD value suggests CMI has a positive trend.
Stochastics (14,3)	89.86	OVERBOUGHT	The high Stochastics value suggests CMI may be overbought.
Average True Range in percent/ATR (20)	1.88	LOW VOLATILITY	The low ATR as a percentage value for CMI suggests low volalility.
Average Directional Index/ADX (14)	45.81	POSITIVE	The high ADX value value for CMI suggests a strong trend.