CMI) Stock Movement Signals Bullish Trend?

Amid the recent short term decline across the broader Wall Street major indexes, Cummins Inc. (NYSE: CMI) stock followed. The drop came in the wake of the United States Federal Reserve’s meeting held on Wednesday, July 5, 2023.

Reuters reported the meeting concluded with the consensus to hold the interest rates steady for June, and to assess the situation to see if the interest hike would be needed in the future.

Cummins share price lost over 2% in the last intraday trading session on July 5, where S&P 500 (SPX) dropped about 0.20% and Dow Jones Industrial Average (DJIA) slid 0.38% during the similar timeframe.

Prior to the price fall on Wednesday, CMI stock traded in green for three consecutive days.

Cummins stock price movement shows its course towards an uptrend. Assuming if it continues the track, it could rise to hit the resistance at $263, which is also the 52-week high for CMI stock price. Though the analysts believe it could hit the level, it can go beyond after consolidation making a strong support for the potential breakout. In case it fails to move sideways, the price is likely to take the downward route again.

The stock price is above the both 50- and 200-days EMA. Given the chart movement, both the moving averages are at the conjunction and a golden crossover is likely to take place. This would indicate another signal for Cummins to take on a bullish trend. Since March 2023, the stock price followed the downward channel but bounced back from $203 and came out at after attaining $230.

Currently, Cummins Inc. stock is trading at $243.3 after shedding value of over 2% in the intraday session. It continued to move upwards from $203 attained in May end and has risen more than 20% since then. Given the current trading price, it is nearly 5% below its 52-week high of $263 and about 10% down from its all time high of $277, attained in March 2021.

Favorable Circumstances for Cummins to Grow

Several hedge fund and investment firms were seen to increase their stake in Cummins Inc. Investment advisor, Patton Albertson Miller Group LLC, increased its stake by 4% in Q1 2023 as the SEC filing shows. Earlier, Biltmore Wealth Management LLC bought Cummins shares in Q4 2022.

In the previous month, the Columbus headquartered company had completed the buyout of its 2019 acquired company, Hydrogenics Corporation. Air Liquide had 19% stakes in the fuel cell and electrolyzer technologies firm, now purchased by Cummins.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing