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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 $77.33 and $77.85 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 share prices have moved between a 52-week high of $79.31 and a 52-week low of $46.19 and are now trading 68% above that low price at $77.57 per share. Over the last five market days, the 200-day moving average (MA) has remained constant while the 50-day MA has advanced 0.7%.

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.

Based on a current price of $77.57, Eaton is currently 4.1% above its average consensus analyst price target of $74.38. 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.

SmarTrend recommended that subscribers consider buying shares of Eaton on November 9th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $64.75. Since that recommendation, shares of Eaton have risen 20.6%. 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