A positive earnings report has ignited a resurgence of interest in flooring producer Mohawk Industries. The shares have rocketed back up the rankings in the SIA S&P 500 Index Report over the last four days snapping out of a downtrend and soaring from deep in the red zone, where it spent the last six months, back up into the Green Favored Zone for the first time since June of 2021.
A major turnaround is underway in Mohawk Industries (MHK) shares. Since peaking nearly a year ago, the shares had been under distribution, falling from near $230.00 toward $120.00 where support finally emerged over the last couple of months. Last week, new investor interest arrived in a big way with the shares staging a breakaway gap upward on a spike in volume. Following a retest of $140.00 as new higher support, MHK has continued its upward course this week.
Initial resistance appears near $160.00, a notable support/resistance level, followed by the $175.00 to $180.00 area where a long-term downtrend line, previous resistance, a round number and a 50% retracement of the previous downtrend cluster together, and then the $200.00 round number on trend.
A downward trend in Mohawk Industries (MHK) bottomed out last month in a Bear Trap Reversal, where MHK broke down into a bearish double bottom by one row then quickly reversed back upward. The rebound has extended into May with the shares completing a bullish Double Top breakout that signaled the start of a new recovery trend, with a bullish High Pole now emerging as well.
Based on previous column highs and lows, and a horizontal count, upside resistance appears near $179.35 and #202.00, close to the $175.00 and $200.00 round numbers. Initial support appears near $141.40 based on a 3-box reversal.
With its SMAX score increasing to a bullish 6, MHK is exhibiting strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
