EMR stuck within tight trading range
Emerson Electric Company (EMR) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
EMR finished the week -1.43% lower at 62.77 after losing $0.43 (-0.68%) today on low volume, underperforming the S&P 500 (-0.16%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EMR as at Jun 14, 2019):
Friday's trading range has been $1.08 (1.71%), that's slightly below the last trading month's daily average range of $1.20. 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 strongly lower than usual for EMR. Prices continued to consolidate within a tight trading range between 62.03 and 63.43 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices are trading close to the key technical support level at 62.01 (S1). The stock closed back below the 20-day moving average at 62.85. When this moving average was crossed below the last time on Wednesday, EMR actually gained 0.73% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Emerson Electric. Out of 104 times, EMR closed higher 52.88% 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 57.69% with an average market move of 0.43%.