Momentum Ignites as This Heavy-Duty Leader Breaks Out

When the pulse of industry shifts, the names providing power infrastructure often become the hidden rally drivers—and that’s exactly what we’re seeing right now. With rising commodity prices, tightening supply chains, and demand for heavy machinery and power systems surging globally, companies in this space are finally getting the spotlight they deserve. Throw in growing demand for data-center power infrastructure (where large generators and power systems are critical), plus cost controls and operational efficiencies that are showing up in improving cash flows, and the setup becomes irresistible. The momentum is building for this under the radar play and price action is confirming that institutional buying is driving this stock. This breakout is the kind of move I want every trader to have on their watchlist—because all signals point to more upside ahead.

The company leading this charge is Cummins Inc. (CMI)—a global leader in advanced engines, power solutions, and heavy-duty equipment. What has investors leaning in right now isn’t just the company’s dominant position in diesel and natural gas engines, but also its aggressive pivot into cleaner technologies like hydrogen and electrified power systems. With infrastructure spending ramping up, data centers demanding more robust power solutions, and global logistics requiring reliable equipment, Cummins is positioned at the very heart of multiple secular growth drivers. Add in steady earnings growth, strong cash flow discipline, and a shareholder-friendly approach to capital returns, and it’s no surprise momentum is accelerating. The market isn’t just rewarding strength here—it’s pricing in the kind of durability that can fuel a powerful and sustained uptrend.

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Now, as the chart shows, CMI is clearly breaking out and in a bullish trend. However, the specific signal from CMI that caught my attention and landed it squarely on my “Buy List” wasn’t just the buzz surrounding its industry strength or the clean uptrend flashing across the charts—it was a very specific technical trigger that I track closely. The 50-day EMA has surged above the 100-day EMA, a powerful crossover that signals medium-term momentum is decisively outpacing long-term momentum. In fact this signal initially occurred back in July. This isn’t just noise—it’s a textbook Buy signal that often marks the beginning of durable, extended rallies. Combine that with the fact that the stock is already trading above every major moving average, and you’ve got a setup that would excite most experienced traders. When I see alignment like this, I don’t hesitate—because these are the kinds of signals that often precede some of the market’s strongest moves.

Now that I’ve determined this is a stock I want exposure to, I need to figure out exactly how I’d look to trade it. For this one, it looks like a strong candidate for an in-the-money call debit spread. The trend and momentum here are powerful, but I also want to build in a bit of cushion in case we see a short-term cool-off after the recent sector rally. With rich option premiums on the board, the call debit spread lets me turn that extra time premium into an edge. At current pricing, there’s a spread offering an eye-catching 52.7% potential return—even if shares finish higher, flat, or even slip by as much as 7.5% at expiration. That’s the kind of probability-rich setup I want in my corner: clearly defined risk, multiple paths to profit, and a meaningful upside.

If you want to learn exactly how I find and execute trades like this, my Weekly Profit Opportunity (WPO) video newsletter is where you need to be. Every week, I break down the charts, share my top trade idea, and deliver a tactical game plan designed for real opportunity. And right now, you can lock in your first month for just $1—that’s four weeks of trade alerts and video breakdowns for the cost of a cup of coffee. Don’t sit back while others act—click below to claim your seat now and see the setups I believe are built to lead.

Wishing You the Best in Investing Success,