Fortune Brands (NYSE:FO), the purveyor of such fine spirits as Jim Beam and Gilbey's Gin, has been on quite a bender lately. Since July of 2000 the stock has gained $16, or 80%. Not just a booze manufacturer, Fortune Brands also makes Swingline staplers, Day-Timers, and Titleist golf balls. Now that's what I call diversity.
Fortune Brands Daily Chart
Fortune has set a new 52-week high today, and looks ready to test the upper boundary of its regression channel. Today's move could also be seen as the completion of a cup and handle formation inside that channel. The weak volume on the breakout has me concerned about FO's ability to move much higher from here, and would need to pullback to even be considered for Premier Markets to cover it.
Fortune Brands Point and Figure Chart
Fortune has also been fortunate on its point and figure chart. This stock has been on a buy signal since October, and has slowly been climbing towards it bullish price objective of $51.50 (Note that the box at $20 is treated as a box size of .5.) (1*.5*3=1.5) + (10*1*3) = 31.50. 31.50 + column low of 20 = 51.50. FO has also been in a nice ascending channel on its point and figure chart, but that looks to be weakening a little. The last rally failed to touch the top of the channel, and the next pullback broke below the lower boundary of the tight channel and almost flashed a sell signal. It still looks like a strong stock, just not quite as strong. If the previous pattern holds, FO should climb one more box to $37, before reversing down to the new up trend at $33. This corresponds to the weak volume on the bar chart, and $33 would be a pullback to the 50-dma.