Johnson Controls Inc. (JCI) has strong potential for significant upside as well as an excellent story of strong fiscal management and innovation. From a technical side there are two competitors of JCI’s that I also think have excellent chart setups: WABCO Holdings Inc. (WBC) and Rockwell Automation Inc. (ROK).
It is very interesting that while WBC and ROK are competitors in two different core areas of JCI’s business — auto parts vs. building automation, respectively — the two competitors have remarkably similar charts to each other, and also to that of JCI. All three have strong setups off the October 2014 lows for immediate upside, in addition to longer term bullishness.
I think JCI can count a bit further ahead in the longer term, as WBC & ROK will only be completing the 5ths of larger wave “i/1” of a very large IIIrd starting. The immediate upside in both WBC and JCI projects over 60% either way, while that of ROK is just over 30% to the lower end of the target box.
by Zac Mannes, originally published on ElliottWaveTrader.net.
