Illinois Tool Works Inc

ITW has broken key support with bearish EMAs on elevated volume, triggering a Support Failure and Bearish Pivot Point that confirm loss of demand control. The medium-term bias is bearish as price trades below declining 9- and 20-day EMAs and under the 50-day SMA, which now act as resistance. RSI remains above oversold levels, leaving room for further decline. We recommend selling into rallies into the broken support zone (~280–282) or near the 50-day SMA (~283–284) on rejection at EMAs.

• ↑Q2 EPS $2.84 up 10% YoY; operating margin at record 26.7%.
• ↑Organic growth +4.5%; welding segment led with 14% expansion.
• ↓Subpar revenue growth factor points to expansion struggles.