EMERSON ELECTRIC CO (NYSE:EMR) showing some interesting technicals. Here's why.

Our stock screener has identified EMERSON ELECTRIC CO (NYSE:EMR) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:EMR.

What is the technical picture of NYSE:EMR telling us.

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Taking everything into account, EMR scores 9 out of 10 in our technical rating. Both in the recent history as in the last year, EMR has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that EMR is one of the better performing stocks in the market, outperforming 89% of all stocks.
• EMR is one of the better performing stocks in the Electrical Equipment industry, it outperforms 79% of 87 stocks in the same industry.
• EMR is currently trading near its 52 week high, which is a good sign. The S&P500 Index is trading in the upper part of its 52 week range, but not near new highs, so EMR is leading the market.
• In the last month EMR has a been trading in the 94.14 - 100.62 range, which is quite wide. It is currently trading near the high of this range.
• Prices have been consolidating recently, this may present a good entry opportunity.

Our latest full technical report of EMR contains the most current technical analsysis.

How do we evaluate the setup for NYSE:EMR?

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:EMR currently has a 9 as setup rating:

EMR has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 99.62. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 98.97, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for EMR in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

How can NYSE:EMR be traded?

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.