PNR: As Good as Gold?

It’s about as boring a company as you are going to find. It’s a UK based industrial products company. But it’s also got a chart that’s as good as gold (circa 2009).

We’ve had Pentair (PNR) on radar in NFTRH’s Notes & Charts segment for a long time. The pullback today to fill the daily chart’s gap gave me a chance to try it as a chart pattern play based on longer-term charts.

pnr

The weekly is what we usually look at in NFTRH for its interesting and bullish looking pattern. The implied target of this breakout is significantly higher.

pnr

It’s not like that is a bottoming pattern however. It is not an Inverted H&S (because it formed after an uptrend, not a downtrend) but whatever it is it appears bullish. When I look at its monthly view I am reminded of another thing that people used to call an Inverted H&S (but wasn’t). It was bullish, however.

pnr

That other thing was none other than gold, circa 2009. I remember ogling that thing as if it were a love interest (I didn’t buy because I bought lower and held all through Armageddon ’08). Its implied target was over 1300 and of course yeller went on to hit 1900 in 2011.

gold

What an ancient form of monetary stability and a boring industrial company with a not so compelling valuation have in common are probably just this one thing; the pattern. There are trading captains out there who do nothing but tell people to buy and sell based on chart patterns. I’ll do no such thing here. I’ll just say that I took a modest position today for the pattern and may well use the 69 area as a tight stop.

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