Actionable news
0
All posts from Actionable news
Actionable news in ETN: EATON CORPORATION PLC ORDINARY SHARES,

Eaton (ETN) Stock Could Be Energized by August, September Bullish Divergence

NEW YORK (TheStreet) -- Like many stocks this year, Eaton (ETN - Get Report) has corrected lower and is trying to bottom, but the technical clues so far are not clear.

ETN peaked and rolled over this past May and June, according to the chart above. Prices broke below the flat 50-day moving average. The On-Balance-Volume line (OBV) turned lower in May and continues on a "glide path." An upturn in the OBV line would be a positive for the bulls. Unlike many stocks that bounce temporarily to the upside before they resume their decline, ETN traded sideways before the next decline.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks with serious upside potential in the next 12-months. Learn more.

There are two positives in this chart. First, in September and October the volume of shares traded is relatively heavy as ETN has bounced off the $50 area three times. One way of interpreting this trend is that buying interest in ETN is as aggressive as the selling interest. Volume is relatively heavy and prices are holding steady. Another positive clue comes from the momentum indicator. As prices sank lower in August...


More