Chart of the Day: A Holding Battles With a Long-Term Support Level
The stock fell sharply to break good support in January but it is trying to rebuild. Here's what to watch now.
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Energy-related companies have had a challenging year so far. Not only has oil fallen sharply since the end of 2024 but we have seen less excitement over the power companies that are AI-related. Some of these, like TheStreet Pro Portfolio's own Eaton ETN have pulled back sharply since peaking in November of last year. That slow and steady decline picked up in February when the entire stock market started to show some cracks.
For its part, Eaton appeared to have some strong support at the $310-320 level at the end of January but that fell by the wayside. More recently a test of the levels from September has been made and might have proven successful.
MACD (moving average convergence/divergence) has suddenly turned up but this indicator remains grossly oversold. Stochastics are firming too (pane 4), telling us momentum is returning and the parabolic SAR (stop and reverse) just turned bullish (top pane), so that is promising.
No question this stock is still bearish but a bit more sideways action would be constructive, giving us confidence that lower levels will not be tested for now.
We like Eaton and rate it a One in TheStreet Pro Portfolio, or "buy at anytime."
At the time of publication, TheStreet Pro Portfolio was long ETN.
