EMN finds support at 200-day moving average
Eastman Chemical Company (EMN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EMN finished the week 3.25% higher at 74.73 after edging lower $0.30 (-0.4%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EMN as at Feb 14, 2020):
Friday's trading range has been $1.42 (1.89%), that's below the last trading month's daily average range of $1.74. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EMN.
Regardless of a strong opening the stock closed below the prior day's open and close, forming a bearish Engulfing Candle.
After trading as low as 73.75 during the day, the market found support at the 200-day moving average at 74.03. The last time this happened on October 31, 2019, EMN gained 3.85% on the following trading day. Prices are trading close to the key technical resistance level at 75.88 (R1).
Eastman Chemical shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 200" stand out. Its common bullish interpretation has been confirmed for Eastman Chemical. Out of 17 times, EMN closed higher 70.59% 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 six trading days, showing a win rate of 52.94% with an average market move of 0.32%.