ETN closes lower for the 2nd day in a row
Eaton Corporation PLC (ETN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ETN finished the month 6.46% higher at 93.13 after losing $1.33 (-1.41%) today, significantly underperforming the S&P 500 (0.77%). Closing below Thursday's low at 93.39, the market confirmed its breakout through the prior session low after trading up to $1.67 below it intraday.
Daily Candlestick Chart (ETN as at Jul 31, 2020):
Friday's trading range has been $2.45 (2.6%), that's slightly above the last trading month's daily average range of $2.11. 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 ETN.
After trading as low as 91.72 during the day, Eaton found support at the 20-day moving average at 91.81. The last time this happened on June 18th, ETN gained 2.07% on the following trading day.
Though the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 20" stand out. Its common bullish interpretation has been confirmed for Eaton. Out of 58 times, ETN closed higher 58.62% 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 53.45% with an average market move of 0.39%.