Chart of the Day: As This Holding's Earnings Approach, Resistance Looms Overhead
The stock's recent slide follows a long uptrend that was interrupted by tariff worries.
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It is tough to hold a high quality company like Eaton ETN and see it get sold off mercilessly as it did earlier this month. But, the entire market went down along with it and there is nowhere to hide when bear market raids occur.
Eaton fell sharply in January and tried to rally, but failed miserably. The stock found support at the trendline drawn in and recently fell through it, but now has miraculously returned to the scene of the crime.
Eaton will report earnings on Friday, before the open.
Indicators are mixed: the Moving Average Convergence Divergence indicator (second pane) and stochastics (second-to-bottom pane) are up, while the parabolic SAR (stop and reverse) is bullish (top pane).
But, the candles at the top pane are amber color, which is neutral on the GoNoGo composite of indicators. Money flow is still weak, but starting to improve. Resistance at the 200-day moving average is going to be tough to overcome.
We like Eaton and rate it a one in TheStreetPro portfolio, buy at anytime.
