Chart of the Day: Is This Holding Base-Building Before a Run at All-Time Highs?
The big energy name is consolidating recent gains and looks ready for its next move.
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Though a bit below the all-time highs, we like the position of Eaton ETN on the chart. After a stellar run from the lows in April, the stock has fortified a zone in the $305-$330 area that does not seem to be a threat to bulls or bears.
The base-building continues and has been happening for about six weeks, as it may be time to test the upside targets from earlier in the year. No question about it, the trend is flat but we also see the strength in candles, as the blues are accumulating in the higher end of the range. That is unquestionably bullish and showing good strength.
What's next?
Well, we would certainly like to see a positive move above the recent highs around $330, and a confirmed move with good volume (not necessary). There is a gap to fill up near $365 as the first objective, then a move to $380 might not be too far off.
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.
