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.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
