BorgWarner Inc. - (BWA) - January 31, 2023 (Daily Stock Report)

by SIACharts.com

Automotive components producer BorgWarner (BWA) has been steadily climbing back up the rankings in the SIA S&P 500 Index Report from deep in the red zone back up into the Green Favored Zone for the first time since October of 2020. Yesterday, BWA climbed another 8 spots to 99th place and it is up 91 positions in the last month. Since bottoming out near $31.00 back in September, BorgWarner (BWA) has been steadily recovering, establishing a new uptrend of higher lows, gapping up through $40.00 to complete a base, and completing 50 and 200-day moving average breakouts plus a bullish Golden Cross. This month, BWA has launched up off of a successful retest of its 50-day average and snapped out of a downtrend.

Initial upside resistance appears in the $49.00 to $50.00 zone where a measured move, round number and the January 2022 high cluster, followed by the June 2021 peak near $54.00. Initial support appears at a recent breakout point near $42.50.

A classic Point and Figure breakout is underway in BorgWarner (BWA) shares. Back in December, the shares completed a base with a bullish Spread Triple Top breakout, followed by a small 3-box correction, and then a second breakout, this time a Double Top that has extended into a bullish High Pole. The combination of two big breakouts with a small correction in between is known as a Bullish Catapult. Along the way the shares have also snapped a downtrend line to confirm that a new advance is underway.

Initial upside resistance may appear between previous column highs near $49.25, and the $50.00 round number. Multiple vertical and horizontal counts point toward resistance in the $52.25 to $57.75 area, a zone that also includes the May 2021 peak near $53.35. Initial support appears near $42.00 based on a common 3-box reversal.

With a perfect SMAX score of 10, BWA is exhibiting strength across 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.

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