EMN closes higher for the 3rd day in a row
Eastman Chemical Company (EMN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EMN ended Thursday at 47.95 gaining $1.37 (2.94%) on low volume, significantly underperforming the S&P 500 (6.24%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EMN as at Mar 26, 2020):
Thursday's trading range has been $3.87 (8.23%), that's slightly below the last trading month's daily average range of $4.14. 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.
After trading down to 46.26 earlier during the day, the share bounced off the key technical support level at 46.39 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Monday, EMN gained 8.31% on the following trading day. After spiking up to 50.13 during the day, Eastman Chemical found resistance at the 20-day moving average at 48.99.
While the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Eastman Chemical. Out of 439 times, EMN closed higher 58.54% 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 59.45% with an average market move of 1.02%.