EMR closes within previous day's range after lackluster session
Emerson Electric Company (EMR) Technical Analysis Report for Jun 01, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, EMR finished Monday at 60.40 losing $0.62 (-1.02%) on low volume, significantly underperforming the S&P 500 (0.38%). Trading $0.42 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (EMR as at Jun 01, 2020):
Monday's trading range has been $1.11 (1.83%), that's below the last trading month's daily average range of $1.66. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EMR.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical support level at 59.66 (S1). After having been unable to move above 61.25 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 61.23. The last time this happened on May 19th, EMR actually gained 1.99% on the following trading day.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 62.41 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 59.53 where further sell stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Emerson Electric. Out of 550 times, EMR closed higher 52.91% 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 54.18% with an average market move of 0.34%.