Emerson Electric Emerges
An upside breakout may have played out this week in shares of industrial equipment manufacturer Emerson Electric (EMR). The stock began the shortened week with a big jump in trade, pacing a 1.25% rally. The follow-through action Thursday was much more impressive. EMR surged more than 4% on accelerating volume while powering through heavy resistance near its 200-day and 50-day moving averages. The stock also easily took out last month's highs. Today, EMR is fading a bit but the potential of a healthy breakout move for this week is still intact.Emerson Electric (EMR) Source: TradeStation View Chart » View in New Window »
Emerson moved sharply higher after putting in a double bottom during June and July. The stock surged into mid-August retracing the entire May breakdown. EMR ramped more than 20% in five weeks. The rally quickly ended after hitting the $53.00 area, a level that had previously held multi-week peaks in February, March and April, leaving behind an ominous spike high. In the aftermath, EMR fell into a bearish channel that eventually pushed shares back below its 200-day moving average. Heading into this week shares had just put in fresh lows after barely holding onto support near the $47.00 area. After yesterday's breakout type move, this support zone has provided EMR with a significant low....149 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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