CMI – Cummins Incorporated
OEM manufacturer heading toward all-time highs.
CMI – Cummins Incorporated
Date: 22 June 2026
Sector: Producer Manufacturing / Industrial Machinery / OEM Components
Exchange: New York Stock Exchange
TradingView link: 1M Candle, 1W Candle, & 1D candles:
Opening/macro/sector context
Cummins is an OEM manufacturer that provides a wide array of products used in industrial machinery and commercial applications.
Its drive products include axles, drivelines, brakes, suspension systems, commercial and diesel applications, turbochargers, fuel systems, valve train technologies, filtration products, automated transmissions and electronics.
So this is a company operating across many segments and involved in various stages of industrial production.
That makes Cummins a very diversified industrial company, serving a wide range of customers, sectors and end markets.
Looking at the company profile, Cummins operates across approximately 190 countries and territories and works through around 600 company-owned and independent distributors.
It also has a presence here in the UK, with a number of large sites across London, Slough, the Midlands, Bradford, the North West, and just outside Glasgow.
So this is not a narrow one-theme stock.
It spans multiple industrial supply chains and provides exposure to the broader industrial economy.
Long-term structure
Looking at the stock's monthly performance, Cummins has a long history dating back to February 1968, when it first floated.
After that, in all honesty, we saw a long period of sideways action, which I have marked with the first pink box.
Since then, the stock has moved up in a steady escalator fashion.
There are probably a number of boxes I could have drawn along the way, but I have focused on one historical box from the early part of the chart and the 3 most recent ones, which are most relevant to the current setup.
I have also marked out two circles on the monthly chart, which indicate breaks in structure.
On both occasions, those structural breaks did not last for prolonged periods.
They were generally quite short-lived, especially the one back in 2020.
Suggesting a company with strong fundamentals that investors are willing to buy when it is at a discount.
The pandemic structure briefly broke structure, but it did not even close below the previous grouping of yellow candles.
After that, the price pushed on to new highs relatively quickly, entered another period of consolidation, moved out to all-time highs again, and then entered another period of consolidation.
That is exactly what we would expect from a strong long-term trend.
It is the classic staircase pattern of higher highs, higher lows, and periods of consolidation before the next move higher.
If we look at the most recent pink box on the monthly timeframe, once Cummins broke out from around $391, the stock has not printed a single yellow monthly candle.
It has continued to push higher, forming a very bullish higher-timeframe bias.
Lower timeframe / recent structure
Dropping down to the daily timeframe, the most recent pink box gives us a clearer view of the breakout.
After Cummins pushed up, it came back to touch the top of that pink box around the $393 level several times.
There were three touches on the daily timeframe at the top of that box before the stock eventually pushed higher.
After that, the structure has not always been perfectly tidy.
There have been several structural breaks along the way.
However, there have also been some very bullish gap-and-go moves, namely on 6 November and 8 April.
Importantly, neither of those gaps was filled.
Instead, the stock continued to move higher, which is a very bullish sign.
Looking at the most recent cluster of candles around all-time highs, we can see that Cummins has just broken out and closed at a fresh all-time high.
Not only that, but the price had already tested this level several times back in May around the $717 area.
Each time, sellers stepped in and kept the price capped at that level.
Eventually, Cummins broke through support and entered a period of consolidation between roughly $630 and $716, which I have marked with the most recent pink box.
The latest move shows the price breaking out of that consolidation and moving into fresh highs.
Entry trigger:
Three clean closes above the last breakout of the pink box.
A breakout of the pink box, followed by a pullback to touch the top of the box, and then a move higher.
Initial stop loss:
Last 4-hour swing low.
Multi-timeframe correlation:
3M: Blue candle
1M: Blue candle
1W: Blue candle, having just been grey
1D: Blue candle
4H: Blue candle
When should I tighten the stop-loss?
Tighten the stop-loss as new 4-hour swing lows form and the stock continues to move higher.
When do I add to the position?
The best way to add to the position is on a pullback from a yellow-to-blue candle or a grey-to-blue candle, as price starts to move back up and attempts to break out again.
Potential target range:
$779 – $891
Activated price targets:
2
Am I in this trade?
Yes
Current R multiple:
+0.02R