EMN rallies 3.24% on high volume
Eastman Chemical Company (EMN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
EMN ended Wednesday at 82.75 surging $2.60 (3.24%) on high volume, significantly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over two weeks. The last time we've seen such an unusually strong single-day gain on September 9th, EMN actually lost -1.63% on the following trading day. Today's close at 82.75 marks the highest recorded closing price since November 8, 2019. Closing above Tuesday's high at 81.32, the market confirmed its breakout through the previous session high after trading up to $2.25 above it intraday.
Daily Candlestick Chart (EMN as at Sep 16, 2020):
Wednesday's trading range has been $3.34 (4.14%), that's far above the last trading month's daily average range of $1.98. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EMN.
One bullish candlestick pattern matches today's price action, the White Candle.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
2019's high at 86.18 is within reach and we could see further upside momentum should the stock manage to break out beyond.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Eastman Chemical. Out of 304 times, EMN closed higher 52.30% 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 54.93% with an average market move of 0.44%.