UTX left behind an ugly key downside reversal after retesting the 2018 peak on May 1st. At this week’s low the stock is off 10% from the highs. This pullback has worked off the overbought reading the stock reached in Q1 and May highs. UTX is testing the top band of a very solid support zone now. This key area is marked by the Feb/March highs near the upper band. The powerful breakout(April 1st) that sparked the second rally leg began from this level. At the lower band is the 200 day moving average.
We consider UTX a low risk buy as this support zone$130.00-$128.00) comes into play. On the downside, a close back below $126.00 would be a clear warning sign.
At time of publication we are long UTX in some managed accounts.