The Materials sector has been one that has been rotated into as Tech (especially software) has been rotated out of. Much like the gold mining sector and other more commodity/resources-related market segments, the cyclical Materials sector has generally had good earnings in the most recent quarter.
I don’t want to buy XLB or those items that have run hard, but in looking inside the sector, I found old friend CBT sporting a “buy opportunity” type of chart. Cabot is a Materials company here in Boston, historically known for its Carbon Black compounds for tires and rubber products, but also more recently expanded products like Battery Materials.
On this daily chart, I am not in love with RSI, nor MACD. But I do like the potential trend change aspect of the chart (from down to up) as it broke above the 200 day moving average (orange) on volume, and is thus far holding it as it flags in consolidation. I also like that risk can be controlled by a loss of the moving averages, which are in close proximity.
If it can make a higher high to the resistance at the recent high, it could be on its way to a test of the all-time highs made in 2024.
I am planning to buy the stock today.
NFTRH+ trade setup ideas are presented for consideration and further research only, not as recommendations. I may or may not personally take positions in all or even most NFTRH+ ideas, as it would depend on my portfolio composition at any given time. “Stop loss” and target levels are usually noted and should be respected.
