BELIMO with strong sales growth and MORE UPSIDE POTENTIAL
As per Friday's closing price my Stock Market Model indicated an upgrade in BELIMO to medium-term and long-term UP.
In my latest Chart Outlook, which was published yesterday afternoon, I recommended purchase of Belimo if 4370 is broken.
This breakout occured today with the latest company statement, showing better than expected numbers.
BELIMO rose to the next resistance at 4750. At this level the rally from Friday is equal to the rise from April to June 2018.
I have two possible scenarios which could develop from here:
The rise from April is the resumption of the long-term uptrend. BELIMO could rise to 5200 before correcting. After such a correction, which would test the major breakout above 4750, the stock could resume the uptrend towards 5600 and the secular resistance range around 6100 to 7200.
The alternate wave count is shown on the second chart below. In this wave interpretation the stock could remain in a Triangle for some more months before breaking upwards to new all-time highs.
The third chart below shows the TICK-chart, i.e. showing all trades since the low on 31.7.2018.
Short-term support is at 4520 and 4370.
THE CHART PATTERN FROM THE PEAK IN JANUARY 2018 APPEARS AS CONSOLIDATION AND NOT AS MAJOR TOP. THUS, BELIMO IS STILL A LONG-TERM BUY.