Illinois Tool Works Inc. (NYSE: ITW)

Illinois Tool Works Inc. manufactures and sells a range of industrial products and equipment worldwide. Its Transportation segment offers plastic and metal components, fasteners, and assemblies; fluids and polymers; fillers and putties; polyester coatings, and patch and repair products; and truck remanufacturing, and related parts and services.
The company’s Power Systems & Electronics segment provides arc welding equipment; metal arc welding consumables and related accessories; metal solder materials; equipment and services for microelectronics assembly; electronic components and component packaging; static and contamination control equipment; airport ground support equipment; pressure sensitive adhesives and components; and metal jacketing and other insulation products.
Its Industrial Packaging segment offers steel and plastic strapping and related tools and equipment; plastic stretch film and related equipment; and paper and plastic products that protect goods in transit.
The company’s Food Equipment segment provides warewashing, cooking, refrigeration, and food processing equipment; and kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services.
Its Construction Products segment offers anchors, fasteners, and related tools; metal plate truss components, and related equipment and software; and packaged hardware and other products for retail. The company’s Polymers & Fluids segment provides adhesives; chemical fluids; epoxy and resin-based coating products; and hand wipes and cleaners.
Please take a look at the 1 yr. chart of ITW (Illinois Tool Works, Inc) that I have shown below with my added notations:

ITW has formed a very nicely defined up-channel over the last (5) months. A channel is simply formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to a channel any (3) points can start the channel, but it’s the 4th test and beyond that confirm it. You can see that ITW has multiple test points between the channel resistance (red) and the channel support (blue). Following the ITW channel can provide you with both long and short trading opportunities.

The Tale of the Tape: ITW has formed a common chart pattern known as a channel, in this case, an up-channel. A long opportunity could be entered on a pullback to the channel support, which is currently sitting near $81. Short trades could be entered at channel resistance OR if ITW were to break below the channel support.
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