Here's a Stock Worth Considering With Its Industry Breaking Out

I like to trade stocks with momentum, and especially those that belong to a group that's showing bullish momentum as well.

Carpenter Technology Corp (CRS) seems to fit that bill.

A little over a week ago, CRS surged over 20% higher when it reported quarterly revenues and EPS that exceeded Wall Street expectations:

Enter Carpenter Tech Corp (CRS):

CRS belongs to the the steel group ($DJUSST), which tried several times over a 4-month period to clear the 600-620 range. Last week, steel was the 10th best performing industry group (out of over 100), gaining more than 3.5%, and finally clearing that price resistance zone to hit 655 at its peak on Wednesday.

I've marked two clear support levels on CRS - one at its breakout level (price resistance becomes price support) and the other at its gap support from earnings. Between those two support levels is the rising 20-day EMA, which also typically provides excellent support during uptrends.

CRS is a bit stretched right now for a trade, but further selling and/or consolidation could make the stock quite interesting for a trade in the weeks ahead.

Happy Trading! Tom Bowley Chief Market Strategist EarningsBeats.com Better Timing. Better Trades.