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Possible Bearish Inside Day Candle Pattern Detected for Eaton (NYSE:ETN)

By Amy Schwartz

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Eaton (NYSE:ETN) based on the price action in the company's shares. Today's price range of $66.94 and $67.25 is within yesterday's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Eaton may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Eaton Corporation manufactures engineered products which serve industrial, vehicle, construction, commercial, and aerospace markets. The Company's principal products include hydraulic products and fluid connectors, electrical power distribution and control equipment, truck drivetrain systems, engine components, and a wide variety of controls.

Eaton (NYSE:ETN) defies analysts with a current price ($67.04) 11.3% above its average consensus price target of $59.43. The stock should discover initial support at its 50-day moving average (MA) of $61.24 and subsequent support at its 200-day MA of $56.22.

In the past 52 weeks, Eaton share prices have been bracketed by a low of $46.19 and a high of $73.82 and are now at $67.04, 45% above that low price. Over the past week, the 200-day moving average (MA) has remained constant while the 50-day MA has advanced 0.7%.

SmarTrend recommended that subscribers consider buying shares of Eaton on July 12th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $63.35. Since that recommendation, shares of Eaton have risen 6.3%. We continue to monitor ETN for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish inside day candle Eaton

Ticker(s): ETN