Technical Earnings Preview: Illinois Tool Works in uptrend ahead of news
The shares have been in a strong uptrend since the lows of January 2016. Ahead of news the stock has made something of a short-term potential double top, with the first peak on June 19, the midpoint on June 29, and the second potential peak to date. If the news is a negative surprise, the first important level of support would be at the $140 area. This is the point of intersection with price and the uptrend support line off the January 2016 lows. A move below the $140 area would snap that uptrend, with the following support levels becoming potential downside objectives: $138.49, $135.31, and the $130 area. In the latter case the $130 area has previously been an important support zone. If the news is a bullish surprise, a move above the $150 area would void any bearish pattern potential. A move above $150.29, the current high, would have no established resistance. There is the potential in that event for a run to the $155-$160 area.