CRS - Carpenter Tech Corp.

CRS is a $1.7 billion dollar basic materials company that manufactures, fabricates, and distributes specialty metals primarily in the United States, Europe, the Asia Pacific, Mexico and Canada. CRS has been consolidating the move that it made earlier in 2010, as it ran nearly 65% in a little more than two months off the February lows. During this consolidation period, CRS has been printing lower highs, but equal lows, resulting in an descending triangle pattern. The move on Monday and Tuesday appears to be breaking out of this bullish pattern and doing so on heavy volume. If the overall market falls back beneath its recent breakout level, we'll need to keep a fairly tight closing stop just beneath the 50 day SMA, currently at $38.40. If this does prove to be the breakout of the triangle pattern, the ultimate measurement would be to the $47.50-$48.00 area. We're still not convinced the market is going to move higher for an extended period, but this pattern on CRS looks solid.