With previous leadership names in technology beginning to show real signs of weakness, astute investors know to look for stocks showing emerging strength. A quick scan for stocks making new swing highs drew me to Motorola Solutions Inc. (MSI) , an old school mobile provider that’s transformed into a commercial communications provider. The chart show that the stock has experienced a dramatic reversal after a weak start to 2025. The daily chart of Motorola shows why the break above the $440 level in early August was so significant. Upswings in February, March, and April all stalled out at this price point, which lined up quite well with the 200-day moving average. So when MSI finally broke above previous resistance, as well as the 200-day, that represented a key “change of character” as buyers took control. In the four weeks since that dramatic breakout, MSI has continued to push higher, with a recent pullback to the 21-day exponential moving average highlighting the strength of the current uptrend phase. MSI was overbought going into September, but it’s worth remembering that the RSI often pushes above the 70 level during healthy bullish trends. How can we tell that the current uptrend represents healthy accumulation? A quick glance at the volume chart shows that the accumulation-distribution line is trending higher. This implies that there is stronger volume on up days then on down days, indicating an influx of buying power. In the bottom panel, we’re showing the Chaikin Money Flow (CMF) which measures volume patterns over a lookback period of about one month. With this indicator well above the zero line, that suggests investors are accumulating MSI as emphasized by stronger upside volume. With these volume indicators remaining in a bullish phase, we would consider Motorola to be in a clear accumulation phase with further upside potential. What does this recent breakout mean in terms of the long-term trend for Motorola? A ten-year weekly chart demonstrates the impressive gains this legacy telecom pioneer has logged over the last decade. We can also see how the pullback in the first half of 2025 looks very similar to two previous downturns. Soon after the COVID low in 2020, a bullish crossover on the weekly PPO indicator signaled an “all clear” and a return to the secular bullish trend. The correction in early 2022 saw a similar end, where a bullish PPO crossover confirmed a new uptrend phase for MSI. At the end of June, MSI experienced a similar bullish signal from the weekly PPO, suggesting that this recent breakout may be just the beginning for Motorola. -David Keller, CMT marketmisbehavior.com DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
