EMN dominated by bulls lifting the market higher throughout the day
Eastman Chemical Company (EMN) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
EMN finished the week 9.15% higher at 65.46 after edging higher $0.06 (0.09%) today on low volume, slightly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EMN as at May 22, 2020):
Friday's trading range has been $1.06 (1.64%), that's far below the last trading month's daily average range of $2.02. Weekly volatility is also lower, being slightly 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 64.37 and 66.23 where it has been caught now for the last three trading days.
Four candlestick patterns are matching today's price action, the Bullish Hikkake Pattern, the Bullish Short Candle and the White Candle which are known as bullish patterns and one bearish pattern, the Last Engulfing Top Pattern. The last time a Bullish Hikkake Pattern showed up on March 23rd, EMN gained 8.31% on the following trading day.
The market found buyers again today around 64.56 for the third trading day in a row after having found demand at 64.68 in the previous session and at 64.37 two days ago.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 61.66.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 66.23 where further buy stops might get triggered.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Eastman Chemical. Out of 91 times, EMN closed higher 59.34% 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 60.44% with an average market move of 0.78%.