United Technologies Corporation (Nasdaq: UTX)

Market sentiment: Bullish

United Technologies shares are trading higher after it posted an 11% rise in second-quarter income buoyed by strong overseas markets and solid performance by its aviation-related units. UTX second quarter net income rose to $1.28 billion or $1.32 a share beating analysts’ estimates of $1.30 a share. If this stock won’t go much further down then this could be a good time to do bullish hedge trade for UTX.
Even though as per the Chart pattern this looks bearish in long term, but for midterm it looks bullish. The reasons are:

• Downward middle Pitch fork is acting as support and resistance. Price was tested from $60 to $62 and now it is trading higher at $64
• Fibonacci retracement level (line from $65 to $75) at 161.8% has given support near £58.5 and now price is near 100% retracement line ($64)
• This could reach $62-$71 level which is a congregation area of upper pitchfork and 61.5% Fibonacci line.
• UTX has not been below $58 in last year and has seen support at $59

So, considering the above technical and fundamentals, we could go for November bull-put credit spread below $50 range. This trade will make a 7% return in 4 months as long as UTX is above $50 at November expiration.