Eaton Corporation plc operates as a power management company
worldwide. Its Electrical Products segment offers electrical components,
industrial components, residential products, single phase power
quality, emergency lighting, fire detection, wiring devices, structural
support systems, circuit protection, and lighting products. The
company’s Electrical Systems and Services segment provides power
distribution and assemblies, three phase power quality, hazardous duty
electrical equipment, intrinsically safe explosion-proof
instrumentation, utility power distribution, power reliability
equipment, and services. The Hydraulics segment offers power products,
controls and sensing products, and fluid conveyance products, as well as
filtration systems solutions, heavy-duty drum and disc brakes, and golf
grips. The Aerospace segment provides hydraulic power generation
systems, controls and sensing products, fluid conveyance products, and
fuel systems for commercial and military use. The Vehicle segment
designs, manufactures, markets, and supplies drivetrain and powertrain
systems, and critical components that reduce emissions and enhance fuel
economy, stability, performance, and safety of cars, light trucks, and
commercial vehicles.
Take a look at the 1-year chart of Eaton (NYSE: ETN) below with my added notations:
ETN started off 2014 by trading mostly sideway, but eventually the
stock fell of a cliff in July, and then again in September and October.
However, ETN has rallied nicely since that October low. During the
entire year, the stock has also made a habit of finding either support
or resistance at $70 (purple). A break above that level now should mean
higher prices for the stock.
The Tale of the Tape: ETN has a key level of
resistance at $70. A long trade could be entered on a break through that
level. However, if you are bearish on the stock, a short trade could be
made on any rallies up to $70.
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