EMR closes within prior day's range after lackluster session
Emerson Electric Company (EMR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
EMR finished the week -0.35% lower at 73.51 after gaining $0.37 (0.51%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $0.45 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (EMR as at Feb 14, 2020):
Friday's trading range has been $0.90 (1.23%), that's far below the last trading month's daily average range of $1.39. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EMR.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar.
After trading down to 72.61 earlier during the day, the stock bounced off the key technical support level at 72.75 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Wednesday, EMR actually lost -3.00% on the following trading day. Prices are trading close to the key technical resistance level at 74.53 (R1). After having been unable to move lower than 72.39 in the previous session, Emerson Electric found buyers again around the same price level today at 72.61.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might speed up should prices move below the close-by swing low at 72.39 where further sell stops could get activated. With prices trading close to this year's low at 71.20, downside momentum might accelerate should the market break out to new lows for the year. As prices are trading close to February's low at 71.74, downside momentum could speed up should EMR mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Emerson Electric. Out of 450 times, EMR closed higher 59.11% 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 54.89% with an average market move of 0.16%.