It was good to see the Wall Street Journal add colour yesterday to the Bloomberg story on Friday regarding a possible deal between United Technologies and Rockwell Collins. Even more intriguing was that at least part of the colour was written about here regarding the two companies being in talks and a possible target of $145. Wall Street Wires did not get a mention this time, although it is to be hoped we were used as a source – one which will help traders and investors.
Looking at the daily chart of Rockwell Collins it can be seen how there has been an accelerating recovery for the stock since the exhaustion gap bear trap reversal of October. The top of the trend channel which it is possible to draw lands at $140 at the resistance line projection – in accordance with the mooted price tag for Rockwell Collins delivered by the WSJ.