EMR closes within prior day's range
Emerson Electric Company (EMR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, EMR ended the month -0.03% lower at 62.01 after losing $0.64 (-1.02%) today on high volume, notably underperforming the S&P 500 (0.77%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (EMR as at Jul 31, 2020):
Friday's trading range has been $1.54 (2.47%), that's above the last trading month's daily average range of $1.29. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for EMR.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on July 10th, EMR gained 1.77% on the following trading day.
The market closed below the 50-day moving average at 62.08 for the first time since July 9th.
Although Emerson Electric is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. Its common bullish interpretation has been confirmed for Emerson Electric. Out of 43 times, EMR closed higher 67.44% 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 65.12% with an average market move of 0.84%.