The oil and gas industry has been trending up as oil prices are on the rise. MSA Safety Incorporated supplies safety and protective equipment to the oil and gas, construction, and other industries. Products of MSA Safety include breathing apparatus, gas detection systems, head protection gear, and fall protection equipment. Given the critical role that safety equipment plays in day-to-day operations, the reputation of the provider matters. MSA Safety has a long track record and a reputation for coming out with new products. Therefore, it is well-placed to benefit from the pickup in economic activity. Its long-term growth prospects are bright.
The long-term monthly chart for MSA shows an uptrend that began towards the end of 2015. Since then, the price has consistently made higher highs and higher lows and largely respected the bottom trendline. The only exception was the March 2020 crash. However, the price recovered by August 2020 and was back above the trendline. The $143 level is an important one as it initially acted as a resistance in early 2020 and now seems to be acting as a support. The price currently is at the intersection of the $143 level as well as the bottom trendline. A bounce back up is highly likely, and the target price is $165-$170. A stop-loss can be placed below the bottom of the long-term trend at around $139.
Position entered into our long-term tracking portfolio today. The entry point is at $152.64, and stop-loss is $122.55, which is 20% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $174.94, giving a profit of 15%.