Curtiss-Wright Corp (CW) Down 9% Last Week


We saw a strong week of retracement for the Curtiss-Wright Corporation all last week after they released earning reports on Tuesday. Their earning per share of $1.90 beats by $0.15. Although in contract the total revenue projections were missed by $39.85 million.

The price experienced incredibly growth over the first quarter of this year as expectation towards military spending grew with new partnerships with companies like Honeywell. Their plans towards reinventing the “Black Box” would potentially bring incredible value to the commercial aviation industry.

The Black Box

For those who are unaware what we are talking about, it is a specifically designed avionics equipment which is most commonly stored in the cockpit of commercial airlines. This device is constantly recording not just audio of conversations in the cockpit as well as conversations between the control tower but also detailed flight data.

The Black Box is capable of tracking GPS location as well as factors such as speed, and altitude. This data is incredible value in the event of a potential fatal accident occurring the those in the aircraft. Being able to collect and analyze data from the accidents allows the National Transportation and Safety Board create a case towards then increasing awareness of the root cause of the accident to education pilots world wide to prevent the accident from occurring again.

The news of the collaboration with long running Curtiss-Wright Corporation with Honeywell provides great optimism towards the future of a more accurate and functional black-box to ensure that in the event an accident ever occurs we can use the tragic event as a lesson to any future pilots.

The Technical Analysis

We can see right at the start of March we have a spike up towards the $125 price level only to test it a few times and then be welcomed to an engulfing bear candle. This set the trend level for the next few weeks and we can see the the strong sell trend driving price down into new lows after experiencing a very consistently strong start of the year.

We are certainly going to keep on eye out for this to see how the rest of the week will pan out to see if price will continue to want to try and push down lower. The great necessity for fast adapting technology is key in today’s age and with today’s market those that try to keep up will get left behind of the companies who are leading the way towards new advancements in aerospace technology.

For any individuals who shorted the stock or purchased any options on the stock (I certainly bought a few Put options myself) are certainly really enjoying to see price continue to hit lower lows over the last week.

Following the overall trend-line from the 1 hr chart and using the Fibonacci Channel, the retracement shows to potentially continue down towards the 52 week low of around $95. Following price down to see it retest that support zone would the signal the opportunity into then looking into entering a long position on the stock.

With Curtiss-Wright having a long history within the aviation industry I would love to see the continued growth of the company with new reliable and responsive systems that help create aviation a safer environment for all. Understanding the role that aviation plays in aviation is essential as it binds together all the pieces to create a network of communication between computers, pilots and passengers.

Happy Trading.

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