Chart of the Day: Eaton Could Start Stepping Up
Bulls will like this opportunity as this One-rated holding may now start to make stair-step moves higher.
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Eaton (ETN) has been a tough stock to figure out. No question the fundamental outlook is positive, but given the uncertainties in the markets around AI and power generation, investors are taking a pause here to make sure their money is put into the right names. Eaton is probably one of those, but a pause might explain the recent slide in the shares late in 2025.
A sharp decline from those highs in the summer was not met with resistance. The drop following October earnings was on strong turnover, but that seemed to push the stock to a level where buyers suddenly showed interest. That would be the $300 marker, and after building a nice base the stock has started to climb.
The price candles at the top are blue or teal, reflecting bullishness on the GoNoGo composite of indicators. The moving average convergence divergence, as seen in the second pane, is bullish and has been since December. But money flow at the bottom of the chart is very impressive, with higher-highs and higher-lows and now in the bullish camp. Momentum is strong with the stochastics now overbought (not a reason to sell). Eaton may follow the stair-step pattern, so look to add more shares on the dips.
We like Eaton in TheStreet Pro Portfolio and rate it a One, or "buy at anytime."
At the time of publication, TheStreet Pro Portfolio was long ETN.
