Chart of the Day: Eaton Is Powering Up
This diversified power management stock has been basing and is now ready to move higher.
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A quiet and slow move higher for Eaton ETN the last couple of weeks has this chart poised for a run at those old highs printed in July. That level, call it $392, is under 10% away from current levels.
The recent cycle for the stock looks very constructive — a pullback, finding a low, building a base and now moving up towards the highs. That is a bullish pattern.
The candles have now flipped around from bearish to bullish (teal/blue) on the GoNoGo composite of indicators. We see impressive moves on the indicators — MACD (moving average convergence/divergence) remains on a buy signal, stochastics (momentum) is strong while money flow (bottom pane) is robust. Nothing here tells us this chart is bearish.
With few catalysts other than peripheral news to drive the stock higher, we can see a nice run for the stock heading into the October earnings period. Perhaps a chance to get towards $400 if this energy company can attract more attention.
At the time of publication, TheStreet Pro Portfolio was long ETN.
