Lennox International Is Surging
Lennox International (LII) is one of the top gainers on the NYSE today following this morning's first-quarter earnings report. Renewed strength in the residential sector, including new and replacement equipment, was the highlight of the release. The heating/cooling equipment maker is up more than 10% after beginning the day with a powerful gap-higher open. Volume on the advance is running very heavy and by the close will be the stock's heaviest positive session since the October bottom. The surge has pushed shares to within striking distance of a new high for 2012. This breakout-type move is leaving behind a healthy five-week consolidation and sets the stock up for further upside.Lennox International (LII) Source: TradeStation View Chart » View in New Window »
Lennox left behind a major double bottom at the September/October lows. The $25 level provided support following a 50% drop from the spring 2011 highs. LII began to recover from the nasty bear move in late October, and by Thanksgiving week the stock was retesting solid support near $30. The stock has been in a steady bull trend since the late-November breakout while working through healthy consolidations along the way. Lennox had rebounded by early March all the way up the midsummer highs. This area, near $43, was a key level prior to the late-July meltdown. LII stalled here and, heading into this morning's news, began tracing out a much-needed pullback. From the 2011 double bottom the stock had gained more than 70% in six months. A period of profit-taking would allow the stock to form a bull flag while working off some of the overextended run....125 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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