ETN closes above its opening price after recovering from early selling pressure
Eaton Corporation PLC (ETN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
ETN finished the week 1.56% higher at 103.55 after gaining $0.66 (0.64%) today on low volume, 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 stock managed to reverse during the session as bulls took control ending the day above 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 (ETN as at Feb 14, 2020):
Friday's trading range has been $1.08 (1.05%), that's far below the last trading month's daily average range of $1.83. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for ETN.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 103.50 (now S1), which is likely to act as support going forward. The last time this happened on February 4th, ETN gained 1.42% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 104.97 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Eaton. Out of 248 times, ETN closed higher 56.45% 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 63.31% with an average market move of 1.14%.