United Technologies Corporation (NYSE:UTX) Started with a Sell Rating

Last Week a Sell Rating was placed on shares of United Technologies Corporation (NYSE:UTX) based on valuation.  That sell rating holds, and valuation as that directly relates to Earnings Growth Rates remain a serious concern.  Y/Y EPS growth has already been negative and it is expected to remain negative this year, with recovery coming next year according to estimates.

Next year is a long ways away, and our assessments suggested that UTX was very close to resistance, and therefore had more downside risk than upside potential.

At face value the multiple does not look excessive, but when negative earnings growth is incorporated it sure does, and when technical assessments are had downside risks look real.

Review the Trading Plans:

Technical Summary

Term →Near Mid Long
Bias Strong Strong Neutral
P1 93.53 79.34 74.69
P2 96.93 87.58 86.97
P3 101.30 96.30 99.05

Long Term Trading Plans for UTX

March 1, 2016, 9:32 am ET

The technical Summary and associated Trading Plans for UTX listed below will help you make important timing decisions for your trades. This data is based on our proprietary analysis for UTX. In addition we offer Market Timing Models and Stock Filters in the links above which may increase the proficiency of the decisions you make.

UTX - (Long) Support Plan

Buy over 86.97 target 99.05 stop loss @ 86.71.
The technical summary data tells us to buy UTX near 86.97 with an upside target of 99.05. This data also tells us to set a stop loss @ 86.71 to protect against excessive loss in case the stock begins to move against the trade. 86.97 is the first level of support below 96.62 , and by rule, any test of support is a buy signal. In this case, support 86.97 is being tested, a buy signal would exist.

UTX - (Short) Resistance Plan

Short under 99.05 target 86.97 stop loss @ 99.31
The technical summary data is suggesting a short of UTX as it gets near 99.05 with a downside target of 86.97. We should have a stop loss in place at 99.31 though. 99.05 is the first level of resistance above 96.62, and by rule, any test of resistance is a short signal. In this case, if resistance 99.05 is being tested, a short signal would exist.

UTX Long Term Analysis

UTX EPS Analysis

UTX Dividend Chart

UTX Revenue chart

UTX Growth rate - Quarterly

UTX Growth rate - Yearly

UTX PE chart

UTX PEG chart