The company that owns and acquires high quality infrastructure and equipment that is essential for the transportation of goods and people globally, Fortress Transprtn and Infr Investrs LLC (NYSE: FTAI) seem to be poised for a price surge as per its latest charts.
Bullish Indications
#1 Symmetrical Triangle Pattern Breakout: As you can see from the daily chart, the stock has been trading within a symmetrical triangle pattern during the past few months. This is marked in the daily chart in pink color. A symmetrical triangle pattern represents a period of consolidation before the price breaks out.
This is typically formed when there is indecision in the price movements and uncertainty among the buyers and sellers. Once a breakout from the upper line occurs, it usually signifies the start of a new bullish trend. Currently, the stock has broken out of the pattern, indicating that it has the potential to move further up.
Daily Chart – FTAI
#2 Price above MAs: The price is currently above the short-term moving average of 50-day SMA and the longer-term moving average of 200-day SMA. It is also near a consolidation area, which is marked as a green rectangle. All these indicate possible bullishness.
[hana-code-insert name=’adsense-article’ /]#3 MACD above Signal Line: The MACD (light blue color) is currently above the MACD signal line (orange color) in the daily chart.
This typically indicates a bullish setup.
#4 Bullish ADX and DI: The ADX indicator shows bullishness because (+DI) is greater than (-DI), ADX and (+DI) are above (-DI), and ADX has moved up from below (-DI).
#5 Bullish Aroon: The value of Aroon Up (orange line) is above 70 while Aroon Down (blue line) is below 30 in the daily chart.
This indicates possible bullishness.
#6 IH&S Pattern: As you can see from the weekly chart, the stock is currently forming an Inverted Head and Shoulders (IH&S) pattern. This IH&S pattern is marked in the chart in orange color. An IH&S pattern is a strong bullish pattern and a breakout from this pattern indicates that the stock may move higher in the short term.
Weekly Chart – FTAI
#7 MACD above Signal Line: The weekly chart also shows that the MACD (light blue color) is currently above the MACD signal line (orange color). This typically indicates a bullish setup.
#8 Bullish Stoch: The %K line is above the %D line of the stochastic in the weekly chart as well, indicating possible bullishness.
Recommended Trade (based on the charts)
Buy Levels: If you want to get in on this trade, the ideal buy level for FTAI is if it closes above the near-term resistance level of $16.50.
TP: Our target prices are $22 and $28 in the next 4-6 months.
SL: To limit risk, place stop-loss at $14.00. Note that the stop-loss is on a closing basis.
Our target potential upside is 33% to 70% in the next 4 to 6 months.
For a risk of $2.50, our target rewards are $5.50 and $11.50. This is a nearly 1:2 and 1:5 risk-reward trade.
In other words, this trade offers nearly 2x to 5x more potential upside than downside.
Risks to Consider
The stock may reverse its overall trend if it breaks down from the symmetrical triangle breakout level with a high volume. The sell-off of the stock could also be triggered in case of any negative news, overall weakness in the market, or any regulatory changes in the sector.
Happy Trading!
Tara
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