AAON specializes in manufacturing HVAC equipment for commercial and residential customers. AAON’s heating, ventilation, and air-conditioning equipment include rooftop units, self-contained units, and multiple other configurations meant for the new construction as well as replacement applications. Most of the revenue is earned from the US. The increase in infrastructure spending and a boom in the US housing market bodes well for the long-term growth of AAON.
Aaon’s monthly long-term chart demonstrates a long-term uptrend. In recent years, the price seems to have stayed within a channel. The price peaked at around $81 in February 2021 before trending downwards by 25%. The $60 mark is an important area of value as it acted as resistance in 2020 and is now poised to act as a support. The current price is close to the $60 level as well as the bottom trend line, and there is a high likelihood of a reversal. We are pre-empting this reversal and recommend a long position with a target of $80 and a stop loss of $56 located below the bottom trend line.

Position entered into our long-term tracking portfolio today. The entry point is at $67.25, and stop-loss is placed at $51.67, which is 23% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $75.88, giving a profit of 13%.