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Possible Bullish Inside Day Candle Pattern Detected for Cummins (NYSE:CMI)

By James Quinn

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Cummins (NYSE:CMI) based on the price action in the company's shares. Today's price range of $112.00 and $114.43 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Traders and investors interested in shares of Cummins may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

Cummins (NYSE:CMI) defies analysts with a current price ($114.36) 7.5% above its average consensus price target of $105.80. The stock should find initial support at its 50-day moving average (MA) of $109.01 and further support at its 200-day MA of $106.04.

In the past 52 weeks, Cummins share prices have been bracketed by a low of $79.88 and a high of $143.40 and are now at $114.36, 43% above that low price. The 200-day and 50-day moving averages have moved 0.25% lower and 1.39% higher over the past week, respectively.

Cummins Inc. designs, manufactures, distributes and services diesel and natural gas engines. The Company also manufactures electric power generation systems and engine-related component products, including filtration and exhaust aftertreatment, fuel systems, controls, and air handling systems.

SmarTrend recommended that subscribers consider buying shares of Cummins on February 4th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $94.40. Since that recommendation, shares of Cummins have risen 18.4%. We continue to monitor CMI for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bullish inside day candle Cummins

Ticker(s): CMI