Stock to Watch: TEX

Terex Corp (TEX) is making new 52 week highs as it breaks out in a strong looking trend. As you can see from the chart below, TEX broke out of a range back in September, had a quick pull-back and is now off to the races. The weekly chart is showing a rounded bottom pattern and the weekly MACD has just crossed the zero line...both bullish signs. Also note that it is trading above it's 20, 50 and 200 day moving averages and the averages are in perfect order (short averages are above the long ones). Here's the daily and weekly charts:Bottom line, I like this stock. It looks very strong. However, take caution as it is over bought right now and is probably due for at least a small pullback. The stochastic is overbought on the daily chart and I will wait for the stochastic to pullback to neutral territory before buying in. One last thing, I put a potential profit target on the chart just above $40...where did it come from? It's the 50% fibonacci retracement level from the weekly chart...it also happens to be the nearest overhead resistance.

Overall, interesting stock and it should definitely be on your radar.

TLT