EMN closes lower for the 2nd day in a row
Eastman Chemical Company (EMN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EMN finished the month 7.17% higher at 74.63 after edging lower $0.31 (-0.41%) today, significantly underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EMN as at Jul 31, 2020):
Friday's trading range has been $1.54 (2.06%), that's slightly below the last trading month's daily average range of $1.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EMN.
Two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Takuri Line showed up on April 22nd, EMN gained 3.95% on the following trading day.
After trading as low as 73.50 during the day, Eastman Chemical found support at the 20-day moving average at 74.27. Prices are trading close to the key technical resistance level at 75.91 (R1).
Although the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Eastman Chemical. Out of 233 times, EMN closed higher 54.94% 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 58.37% with an average market move of 1.35%.