| August 3rd, 2021 Buying Pressure Moves CARR Higher Dear Reader, Yesterday, we looked at a Monthly Price Chart of Visa Inc., noting the stock’s 1-Month Price is trading above the 10-Month SMA signaling a PowerTrend ‘Buy’ signal. For today’s Trade of the Day we will be looking at an On Balance Volume chart for Carrier Global Corp. stock symbol: CARR. Before breaking down CARR’s OBV chart let’s first review which products and services are offered by the company. Carrier Global Corporation provides heating, ventilating, and air conditioning (HVAC), refrigeration, fire, security, and building automation technologies worldwide. It operates through three segments: HVAC, Refrigeration, and Fire & Security. The HVAC segment provides products, controls, services, and solutions to meet the heating and cooling needs of residential and commercial customers. Confirming a Price Uptrend with OBV The CARR daily price chart below shows that CARR is in a price uptrend as the current price is above the price CARR traded at five months ago (circled). The On Balance Volume chart is below the daily chart. On Balance Volume measures volume flow with a single Easy-to-Read Line. Volume flow precedes price movement and helps sustain the price uptrend. When a stock closes up, volume is added to the line. When a stock closes down, volume is subtracted from the line. A cumulative total of these additions and subtractions form the OBV line. On Balance Volume Indicator ● When Close is Up, Volume is Added ● When Close is Down, Volume is Subtracted ● A Cumulative Total of Additions and Subtractions form the OBV Line Volume flow precedes price and is the key to measuring the validity and sustainability of a price trend. We can see from the OBV chart below that the On Balance Volume line for CARR is sloping up. An up-sloping line indicates that the volume is heavier on up days and buying pressure is exceeding selling pressure. Buying pressure must continue to exceed selling pressure in order to sustain a price uptrend. So, On Balance Volume is a simple indicator to use that confirms the price uptrend and its sustainability. The numerical value of the On Balance Volume line is not important. We simply want to see an up-sloping line to confirm a price up trend. 
Confirmed ‘Buy’ Signal for CARR Since CARR's OBV line is sloping up, the most likely future price movement for CARR is up, making CARR a good candidate for a stock purchase or a call option purchase. Let's use the Hughes Optioneering calculator to look at the potential returns for a CARR call option purchase. The Call Option Calculator will calculate the profit/loss potential for a call option trade based on the price change of the underlying stock/ETF at option expiration in this example from a flat CARR price to a 12.5% increase. The Optioneering Team uses the 1% Rule to select an option strike price with a higher percentage of winning trades. In the following CARR option example, we used the 1% Rule to select the CARR option strike price but out of fairness to our paid option service subscribers we don’t list the strike price used in the profit/loss calculation. | 
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