The manufacturing sector is starting to show some signs of life based on the 2.9% increase in durable goods orders. The number came in better than analysts' 0.4% expectations, and was much improved from last months 5.5% decline. Lets see how some household durable goods stocks are doing.
Whirlpool Daily Chart
Whirlpool (NYSE:WHR) has gained about 90% since starting its ascent back in August of 2000. During that time a regression channel has done a good job of containing the price action. The lower boundary has been tested four times, but has managed to hold each time. The decent in March came close to breaking the trend on heavy volume, but managed to hold. The declining volume on Whirlpool's latest rally suggests that another test of the lower boundary could be coming in the future, but the 50-day moving average and previous low at $58.50 could step up to prevent that.
Maytag Daily Chart
The chart of Maytag (NYSE:MYG) isn't quite as nice. Maytag had a
nice run from October to March, gaining $11, but hasn't been able
to recover from the March decline. Prices tried to hold above
the 50-day moving average, but eventually fell to the 200-dma.
Prices then consolidated there for a week or two, but eventually
gave way. $31 should have offered some kind of support, but it
didn't. Now the only thing that could stop Maytag from falling
to $27 or $26 is the fact that it is oversold and due for a
breather. Other than that, any support levels are non-existent.