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

By Nick Russo

SmarTrend's candlestick scanner has spotted a possible bullish inside day candle pattern in Eaton (NYSE:ETN) based on the price action in the company's shares. Yesterday's price range of $55.85 and $57.11 is within the prior day'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. Traders and investors interested in shares of Eaton may want to consider an appropriate entry level in the event a reversal to the upside transpires. It is important to look for confirmation.

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.

Over the past year, Eaton has traded in a range of $46.19 to $73.82 and closed yesterday at $56.86, 23% above that low. Over the past week, the 200-day moving average (MA) has remained constant while the 50-day MA has advanced 0.7%.

Potential upside of 4.5% exists for Eaton, based on a current level of $56.86 and analysts' average consensus price target of $59.43. Eaton shares should encounter resistance at the 50-day moving average (MA) of $61.24 and support at its 200-day MA of $56.22.

SmarTrend recommended that its subscribers protect gains by selling shares of Eaton on April 6th, 2016 by issuing a Downtrend alert when the shares were trading at $59.28. Since that call, shares of Eaton have fallen 6.3%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: bullish am inside day candle Eaton

Ticker(s): ETN