EMR closes above its opening price after recovering from early selling pressure
Emerson Electric Company (EMR) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
EMR ended Tuesday at 72.18 gaining $0.38 (0.53%) on low volume, slightly outperforming the S&P 500 (0.05%). Today's close at 72.18 marks the highest recorded closing price since October 19, 2018. Trading up to $0.19 lower after the open, Emerson Electric managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on April 11th, EMR gained 0.90% on the following trading day. Closing above Monday's high at 72.11, the stock confirmed its breakout through the prior session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (EMR as at Apr 16, 2019):
Tuesday's trading range has been $0.41 (0.57%), that's far below the last trading month's daily average range of $0.91. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EMR. Prices continued to consolidate within a tight trading range between 71.49 and 72.40 where it has been caught now for the last three trading days.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 72.40 where further buy stops could get activated. Selling might accelerate should prices move below the nearby swing low at 71.49 where further sell stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Emerson Electric. Out of 738 times, EMR closed higher 53.25% 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 55.56% with an average market move of 0.56%.