United Technologies Corporation (one of the 30 Dow components) is set to release its quarterly earnings tomorrow. As you can see from the chart below, UTX is currently testing an area of support near $54.20 - a level that we believe is likely to prop up the price of the shares if the news is slightly worse than anticipated. If earnings are substantially worse than expected, we'd expect to see the price of UTX fall toward the combined support of the 200 DMA and the Aug-Sept highs (support #2). Conversely, if the earnings come in better than expected, we'd expect UTX to climb toward the resistance of the descending trendline near $55.50.


Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
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