Johnson Controls International (JCI) has received a high rating of 93% from Validea's Multi-Factor Investor model, indicating strong fundamentals and valuation. This model, based on Pim van Vliet's strategy, focuses on low volatility stocks with strong momentum and high net payout yields, suggesting JCI is well-positioned in the Misc. Capital Goods industry.
The stock is currently showing signs of being oversold, with RSI_6 at 28.11, RSI_12 at 37.52, and RSI_14 at 39.45. The StochK and StochD are both around 16, indicating oversold conditions. The MACD is negative at -0.51, with a MACD Histogram of -0.94, suggesting downward momentum. However, the MACD Signal is at 0.43, indicating a potential bullish crossover.
The Fibonacci levels show a pivot point at 82.85, with resistance levels at 85.69 and 87.45, and support at 80 and 78.24. The stock is currently near the lower end of its Fibonacci range, suggesting potential support around the 80 level.
Recent news indicates that European CEOs, including those from JCI, are shifting focus to the U.S. market due to improved growth prospects and valuation gaps. This could lead to increased investments in JCI's U.S. operations, potentially boosting the stock price.
Given the oversold conditions and potential support at 80, JCI could experience a short-term rebound. However, broader market uncertainties, such as trade tensions, may limit upside potential. The stock is expected to rise slightly to around $82.50 next week.
Sell if the price approaches the resistance level of 85.69, as this could indicate a reversal. Consider buying near the support level of 80 for a potential short-term gain.
The price of JCI is predicted to go up 1.41%, based on the high correlation periods with SWI. The similarity of these two price pattern on the periods is 96.22%.
JCI
SWI
Johnson Controls should benefit from secular trends in global urbanization and increased demand for energy-efficient and smart building solutions.
The COVID-19 pandemic has increased the market opportunity for air filtration and touchless access control solutions.
Johnson Controls' growing catalog of digital solutions and efforts to increase service attachment rates should bolster top-line growth and expand operating margin.
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