After Easter dinner we had a lot of left overs. There were 11 of us at dinner and we barely made a dent in the smoked salmon appetizer, lamb, potatoes and green beans. So what did we do? We open the cabinets and find Rubbermaid containers in which to store it.
This may not explain the recent strength in Newell Rubbermaid (NYSE:NWL), but it's a start. The strength in the stock might be better explained by looking at the chart below. NWL spiked higher in December only to immediately fall back. That led to a downtrend, which found a bottom in mid January. The bounce that followed was short lived and it fell back to a lower low.
On February 11, it found support and started back higher.
As the price moved back over the February 1 high, it committed to the Shark harmonic pattern shown. This looks for a move up to 46.60 (Potential Reversal Zone I) or 49.94, PRZ II, before a possible reversal lower. The chart also shows the current consolidation under resistance at a level that was important support in the last half of December. A push over this resistance would give a Measured Move to 48.
So there are measures that suggest more upside to come. But they are not the only ones. Momentum is also strong. The RSI is rising and bullish while the MACD is positive and also rising. The Bollinger Bands® are pointing higher too. And with over 18% short interest, there is fuel to get the stock moving higher.