ETN finds buyers around 103.00 for the third day in a row
Eaton Corporation PLC (ETN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
ETN ended Wednesday at 104.39 gaining $1.51 (1.47%), strongly outperforming the S&P 500 (-0.46%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (ETN as at Sep 16, 2020):
Wednesday's trading range has been $2.39 (2.31%), that's slightly above the last trading month's daily average range of $2.22. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ETN. Prices continued to consolidate within a tight trading range between 102.63 and 105.39 where it has been caught now for the last three trading days.
Prices are trading close to the key technical resistance level at 106.07 (R1). The share found buyers again today around 103.00 for the third trading day in a row after having found demand at 102.79 in the previous session and at 102.63 two days ago. The last time this happened on August 31st, ETN gained 1.30% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 106.07, upside momentum might speed up should the market be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Eaton. Out of 92 times, ETN closed higher 60.87% 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 54.35% with an average market move of 0.57%.