Don’t Sleep on this breakout from Tempur Sealy $TPX – July 10, 2023
This is Scott with your Chart of the Day. I want to take a look at Tempur Sealy ( NYSE: TPX ), yeah, the bed company.
Now, Tempur Sealy ( NYSE: TPX ) was not immune to the big fall that stocks had over 2022. You can see how it was basically, a straight shot to the downside, as interest rates rose and the idea of a pending recession came forward. But since then it has recovered and it looks like we have a bit of a long cup and a long handle here on Tempur Sealy ( NYSE: TPX ).
Recently, today, a nice breakout coming on higher than average volume. And so I definitely wouldn’t sleep on this stock because, if I zoom out, it is climbing towards that all-time high right around that $50.00 range, right around 50.70. And you can see how we have this really nice long base of consolidation. It has basically gone sideways since March.
And so while there is a lot of thought that the market is getting frothy, stocks are too expensive, this stock consolidated for 3 months before it broke out. And so because it is still pretty close to its longer-term moving averages, I think, you definitely want to watch this stock as a potential continuation trade. If we get a nice pullback or test of this breakout, and then some consolidation higher.
So in the short-term, I would definitely look at that 44.00, 45.00 level as a potential speed bump. Watch how price reacts around that zone. If you get some nice tight sideways action, maybe a high base or a high handle, watch for a continuation to the upside above that $45.00 level. So this is one stock that I definitely wouldn’t sleep on, pun intended.
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