Reliance Worldwide manufactures and supplies products for the plumbing and heating industry.
“They are a beneficiary of increased construction and renovation, and have recently expanded into the US,” Michael said.
“Most analysts have been wary of this US expansion, but the recent interim results have been better than expected.
“This has caused some massive upgrades to price targets and a breakout in the share price which can lead to higher levels.
“From a charting perspective, the past two years has seen RWC form a large inverse head and shoulders with resistance at $4.50.
“We now have an upside break after this week’s result (circled in chart below).
“This means that RWC should trend higher from here with an ultimate target near $6.
“Current levels are a buying opportunity and initial stops can be placed just under $4.50,” Michael said.

Reliance Worldwide (RWC)

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