EMN closes above its opening price after recovering from early selling pressure
Eastman Chemical Company (EMN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EMN finished the month 2.29% higher at 69.64 after gaining $0.32 (0.46%) today, significantly underperforming the S&P 500 (1.54%). Trading up to $0.97 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. 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 Jun 30, 2020):
Tuesday's trading range has been $2.49 (3.62%), that's slightly above the last trading month's daily average range of $2.44. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EMN.
After having been unable to move lower than 67.85 in the previous session, Eastman Chemical found buyers again around the same price level today at 67.87. The last time this happened on June 25th, EMN actually lost -0.65% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 70.70 where further buy stops could get activated.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Eastman Chemical. Out of 317 times, EMN closed higher 53.31% 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 56.78% with an average market move of 0.62%.