Chart of the Day: This New Bullpen Name Is Where the Power Is
We're eyeing this high-voltage chart for a possible entry point.
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If you look at new Bullpen name Eaton Corp. ETN from a chart perspective you can see the power of price action.
Notice the big move up at the end of January (arrow) that led to a very steady increase — about 25% higher from that point. With a pattern of higher highs, higher lows and those consistently blue candles there was nothing to get in the way of the bulls.
The stock has not even slowed down. As we added Eaton to the Bullpen on April 29 we are looking for a modest pullback to potentially add it to TheStreet Pro portfolio. As we often say, stocks with the best trends rarely give you a good chance to add shares, and such is the case with Eaton. Look at the chart and tell us where there was a dip opportunity over the past few months. You don't see it, so we will be tactical and step into potential trade when we are ready for it.
As for the chart, moving average convergence divergence (MACD) is on a buy signal, and the parabolic SAR (stop and reverse system) is also on a buy; this indicator tells us the change in the trajectory of price before it happens.
Stochastics (pane 4) is overbought so a pullback can be seen at anytime. Lastly, volume trends are very strong.
At the time of publication, TheStreet Portfolio had no positions in any securities mentioned.
