ETN breaks back above 200-day moving average
Eaton Corporation PLC (ETN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, ETN ended the month 3.04% higher at 87.48 after gaining $0.57 (0.66%) today, underperforming the S&P 500 (1.54%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (ETN as at Jun 30, 2020):
Tuesday's trading range has been $1.81 (2.09%), that's below the last trading month's daily average range of $2.80. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower 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.
The market managed to close back above the 200-day moving average at 87.38 for the first time since June 19th. After having been unable to move above 87.74 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 87.93. The last time this happened on June 26th, ETN actually gained 1.65% on the following trading day.
Eaton shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the nearby swing high at 89.48 where further buy stops could get triggered.
Among the seven 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 Eaton. Out of 36 times, ETN closed higher 61.11% 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 69.44% with an average market move of 1.73%.