This Blue Chip stock is poised to break out. (April 05, 2013)

by DAN UTX 
I’m Dan Fitzpatrick at StockMarketMentor.com on Saturday, April 6th. I want to look at United Technologies ( $UTX United Technologies Corporation ).This is a large-cap Dow component, nobody really talks about it too much. I’m not exactly sure why that is, but at least for the short run, probably because it’s not doing too much. You can see this stock is in a fairly tight volatility squeeze. You look at the Bollinger Bands, I mean these things are really pinching together, I think this will probably wind up being a pinch and pop, which is actually not a term for teenagers dealing with their acne issues, but actually just what I call a stock that has been trending sideways long enough to where these bands really, really do pinch tightly; unlike what we’ve seen here, which is certainly a squeeze, but they have just kind of been drifting sideways. But here the volatility, just over the last week or so, has been really, really tight, which has drawn these things in. So what you want to look for is this, you want to look for a close above the upper Bollinger Band. Look again how tight these things are. If this stock closes above the upper band, which is $93.73, if it closes, above that level, then this is a stock that is probably going to have some significant volatility expansion and it’s all going to be pretty much to the upside. I’d just suggest that you watch this stock. Now members, in this Strategy Session I’ve got a video dedicated specifically to high yielding stock. We’ve got a bunch of them, that are yielding well over 10 percent, that are actually really safe, so we’re going to look at those; I want you to get over there now.

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