EMN finds buyers again around 75.78
Eastman Chemical Company (EMN) Technical Analysis Report for Jan 11, 2019 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, EMN finished the week 2.77% higher at 76.90 after gaining $0.45 (0.59%) today, outperforming the S&P 500 (-0.01%). Today's close at 76.90 marks the highest recorded closing price since December 4, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EMN as at Jan 11, 2019):
Friday's trading range has been $1.32 (1.74%), that's far below the last trading month's daily average range of $2.18. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EMN. Prices continued to consolidate within a tight trading range between 75.25 and 77.10 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on January 2nd, EMN actually lost -2.31% on the following trading day. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern.
The stock managed to close above the 50-day moving average at 76.75 for the first time since September 21, 2018. After having been unable to move lower than 75.79 in the previous session, Eastman Chemical found buyers again around the same price level today at 75.78.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Eastman Chemical. Out of 84 times, EMN closed higher 55.95% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.33% with an average market move of 1.51%.