Chart of the Day: Eaton Is Losing Power
The stock has traded poorly versus its peers.
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There seems to be a major power outage among the companies providing energy to data centers, AI locations and other sectors. Eaton (ETN) is one of many names that seems to have plenty of business, but the stock just cannot seem to catch a break. Regardless of any good news Eaton just seems to be a stock many investors want to sell and not wait for it to recover.
The chart is unquestionably bearish, and has broken the downtrend channel on higher volume. We look for the shares to pivot off some good strong support (drawn in the first chart), and perhaps rally back into the channel. That is sloping downward, so a downtrend is intact.
MACD is on a sell signal while stochastics have rolled over, amd money flow is also bearish. There is further support even lower around the $320 area, but I suspect we won’t get there anytime soon, or else this stock would be a screaming buy.
We like Eaton in TheStreet Pro Portfolio and rate it a Two, or “stockpile on pullbacks.”
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At the time of publication, TheStreet Pro Portfolio was long ETN.
