EMR ends the day indecisive
Emerson Electric Company (EMR) Technical Analysis Report for Dec 04, 2019 | by Techniquant Editorial Team
EMR ended Wednesday at 73.50 surging $0.89 (1.23%), outperforming the S&P 500 (0.63%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on November 1st, EMR gained 1.99% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (EMR as at Dec 04, 2019):
Wednesday's trading range has been $1.10 (1.5%), that's far above the last trading month's daily average range of $0.81. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for EMR.
After spiking up to 74.18 during the day, the market found resistance at the 20-day moving average at 73.59.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 75.54, upside momentum might speed up should Emerson Electric be able to break out to new highs for the year.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Emerson Electric. Out of 57 times, EMR closed higher 56.14% 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 49.12% with an average market move of 0.08%.