Let’s take a sip of this $AQUA chart with Scott! – March 24, 2022

by DAN AQUA 
This is Scott with your Chart of the Day. I want to take a look at Evoqua Water Technologies ( NYSE: AQUA ). As you can see, Evoqua ( NYSE: AQUA ) is in a nice uptrend. It is above all the major moving averages and within 9 percent of its all-time high.

Now, when the market is choppy and weird I like to pay attention to stocks that are near to their all-time highs. Because stocks that are near their all-time highs tend to make new highs. And so I think Evoqua ( NYSE: AQUA ) or AQUA, is in an interesting spot here because we are above all the major moving averages.

And as you can see we are finding support right around that 8-day exponential period moving average. I can draw a little bit of a downward sloping trendline and it gives us a little bit of a flag here. What we want to see from AQUA ( NYSE: AQUA ) is a strong move above that coming on higher than average volume.

Now, within t his consolidation it has been pretty healthy price action. Look at the volume here, it goes up on high volume, pulls back on low volume, and today, just a nice quiet inside day, kind of indecision. No one is really aggressive, buyers aren’t aggressive and the sellers aren’t aggressive, so I love this quiet consolidation day.

And so, at stockmarketmentor.com I suggest that our members take a look at this chart and watch it to hold above this low here at around 44.15. If it breaks below 44.15 it is not really making higher lows, it’s making lower lows. So if this stock does break out and then come back and breach that 44.15 level, that is probably something that you will not want to be in.

What I also like about this stock is the fundamentals. So let’s bring in the chart from MarketSmith. As you can see here on the Earnings and Sales they have had increasing positive earnings and sales over the last four quarters. They were down -7, down -5, and then positive +3, and this last round +100 percent, so increasing earnings and sales.

We like that, and as you can see, has a nice RS rating, a decent accumulation/distribution. And in terms of Fund Ownership, Lord Abbett has 1.75 percent of their fund in AQUA ( NYSE: AQUA ). I like that there is a big fund involved in one of the IBD Mutual Funds in this stock. Because we want to be in stocks that the big money is in.

I think that AQUA ( NYSE: AQUA ) is definitely a stock that we should keep an eye on. We will want to watch for a strong break above that downward sloping trendline coming on higher than average volume.

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