BorgWarner Trades in an Upside Price Channel

BorgWarner (BWA), a global supplier of drivetrain and engine parts for automobile, busses, trucks and heavy equipment, is a well-run innovative company. Unlike auto suppliers Delphi (DPH) and Visteon (VC) BWA is not saddled with a very high wage and benefit structure. Also, BWA encourages innovation research that leads to frequent development of new products.

BWA trades in an upside price channel (recurring highs and lows are parallel) in which prices vary substantially. Buy BWA when it is near or at the lower band of the channel.