Bugs Bunny was a favorite in my house when I was a kid. And I will always remember this episode when, after a series of bizarre events Bugs Bunny is left in the cockpit of a plane heading for the ground. Luckily after reading about how to fly a plane he finds the air brakes and pulls back hard on the lever just before the plane hits the ground. It stops of course, defying gravity and the show ends.
This is not possible, of course, but air brakes are a real thing. And Westinghouse Air Brake Technologies (Wabtec) (NYSE:WAB) quite possibly was consulted for the cartoon. Wabtec does not make products that help you defy gravity, but it looks like its stock price is about to do just that.
The chart above shows a move higher in October to a rounded consolidation through February and a move higher toward the end of the month. Since then it has consolidated in an ascending triangle against resistance at 96.80. The series of higher lows against that resistance are building power. And with the Bollinger Bands® tight and now opening up, a move could happen anytime.
To the upside, it would carry a target of 105.55. The momentum indicators are supportive of a move higher as well. The RSI is in the bullish zone while the MACD is about to cross up. Get ready to take your foot off of the brakes and buy this stock as it moves higher.