EMR breaks above 200-day moving average for the first time since June 10th
Emerson Electric Company (EMR) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
EMR ended Wednesday at 64.69 surging $2.76 (4.46%) on high volume, strongly outperforming the S&P 500 (0.64%). This is the biggest single-day gain in over two months. Today's close at 64.69 marks the highest recorded closing price since June 10th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 63.62, the share confirmed its breakout through the previous session high after trading up to $1.35 above it intraday.
Daily Candlestick Chart (EMR as at Aug 05, 2020):
Wednesday's trading range has been $2.18 (3.45%), that's far above the last trading month's daily average range of $1.40. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EMR.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close above the 200-day moving average at 64.57 for the first time since June 10th. When this moving average was crossed above the last time on June 5th, EMR gained 3.32% on the following trading day. Prices are trading close to the key technical resistance level at 65.38 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 200" stand out. Its common bullish interpretation has been confirmed for Emerson Electric. Out of 38 times, EMR closed higher 65.79% 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 65.79% with an average market move of 0.92%.