Trane Technologies (TT) remains one of the most resilient and technically sound names in the SIA Industrials Sector Report where it ranks at position 14. Backed by strong earnings growth, a record order backlog, and rising demand from data center cooling and sustainable HVAC solutions, the company is executing well across all major segments. Having rallied significantly in 2024 from approximately $200 to as far as $410, shares spent the first half of 2025 in a consolidation period where they relaxed back to $320 but have been back on the move now attaining a new all-time high once again with quarterly performance at 28.72%, well exceeding the market benchmark return of the S&P 500 which clocked in at 19.22% over the same period. When compared on a head-to-head basis against the entirety of the S&P 500 constituents, TT also ranks high in the favored zone of the SIA S&P 500 Index Report at position 27, having moved up 95 spots in the past quarter. This is visualized in the attached SIA matrix position chart where it relaxed back into neutral (yellow) only to pop back into the favored zone with vigor. Turning next to the candlestick chart set for monthly candles to get a broader view of important technical levels, our eyes can quickly train on the two wicks circled in blue where buyers clearly were eager to add at those levels. Several tall green candles dominated the last quarter where buyers took control of trading after weaker hands took to the sidelines. Share prices have rallied past prior resistance (now support) just above $400 as the candles shorten and buyers may be on guard for sellers to push back. The latest candle is only 11 days old and volume is muted.
The attached point and figure chart allows for more specificity surrounding support and resistance and also allows users to visualize the trend line and how far many equities have rallied from this important reading. Shares remain strong technically as illustrated with the green colors that show TT’s favored position within the SIA S&P 500 Index Report. A support zone has been set at $366.91 to $359.72 with upper support at $397.16, consistent with the psychological whole number that often accompanies a natural support level. Resistance is built using a point and figure vertical count initially up to $465.33 and further up at $513.76. Fundamentally, recent reports show Barclays recently raised its price target on Trane Technologies to $480 with an Overweight rating citing continued strength in demand. Goldman Sachs increased its target to $460, maintaining a Neutral stance as it monitors valuation. UBS reaffirmed a Strong Buy with a $500 target highlighting Trane’s leadership in climate innovation and long-term growth potential. Meanwhile, Wells Fargo raised its target to $410 on July 1, 2025, up from $370, signaling improved near-term sentiment. While currency impacts may be priced in, Wells Fargo remains cautious anticipating potential downside if earnings expectations are not met.
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