6 Charts in 60 Seconds | Clean Setups in Dirty Stocks

I love the Blue Collar. It’s a culture centered around getting sh*t done. To me, it’s exactly what technical analysis is about, show me a reason to invest based on what actually matters ….PRICE. Not an elegantly rehearsed pitch deck, not a fancy steak dinner; all we need are the charts. That storytelling, while sexy, is hostile towards your capital. It’s my goal to help bring clarity via price to the hostility Wall Street profits from, so let’s dive into six Blue Collar stocks with clean setups and favorable risk/reward.

1.) $EMR - Emerson Electric is an electrical equipment company based in the US with a market cap of roughly $65 billion. You can see that the breakout in February has led to a clean consolidation above support. One thing I like to see during consolidation is the RSI staying above 50; it shows that bulls are keeping control of the momentum for the next leg higher. I would be patient and wait for a breakout over $115, but I think this will ultimately resolve higher in the second half of 2024.

2.) $CARR - Carrier Global Corp, with a market cap of roughly $59 billion, provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies. After forming a two-year base, we saw a breakout in early April that is now consolidating above that level and looks to be gearing up for its next leg higher. Once again, the RSI is staying pretty bullish during the recent consolidation. I like this one long against $60, as the resolution could be massive.

3.) $OTIS - Otis Worldwide Corporation, which manufactures elevators and escalators, has a market cap of around $40 billion. It closed this week at all-time highs above $100, a significant psychological hurdle. This breakout initially started by crossing over $90, then consolidated for a bit, and now appears to have just begun its next move higher. There's a very clean risk-reward setup here against $90.

4.) $IR - Ingersoll Rand provides air, gas, liquid, and solid flow creation technologies, services, and solutions with a market cap of around $39 billion. The clean charts speak for themselves. You can see that we had a nice run post-breakout retest to start the year and have been consolidating ever since. We closed this week at all-time highs and are looking for follow-through next week.

5.) $SPXC - SPX Corp supplies infrastructure equipment serving the heating, ventilation, and cooling (HVAC); market worldwide. With a market cap of roughly $7 billion, this is a stock that could double and no one would blink. It's currently in a strong uptrend that has been consolidating for about 8 weeks and looks ready for the next leg higher. I love this stock long against the $145 breakout level.

6.) $ALSN - Allison Transmission Holdings is about as Blue Collar as it gets, with a market cap of roughly $7 billion. This company manufactures transmissions for commercial vehicles, tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It's another smaller market cap name that could double and still remain off everyone's radar. I like this stock for a long position against this year's lows, in that $70 range.

No one knows the future, but if we continue to see rotation, these Blue Collar stocks are names I would keep an eye on.

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