Emerson Electric Company (NYSE: EMR) posted its Q4 numbers, which were below the estimates amid selling pressure. However, the stock is in the retracement phase and slipped below the significant moving averages. Additionally, the stock did not manage the gains and continued to face rejection. The sellers looked confident and persisted in making short positions. The chart shows the rounding top pattern and a breakdown below $90.
Emerson Electric Co. is a global technology and engineering company, which designs and manufactures products and delivers services that bring technology and engineering together to provide innovative solutions for customers in a wide range of industrial, commercial, and consumer markets. It operates through the following segments: Final Control, Measurement and Analytical, Discrete Automation, Safety and Productivity, Control Systems and Software, and AspenTech. The company was founded by Charles Meston and Alexander Meston on September 24, 1890, and is headquartered in St. Louis, MO.
The Q4 numbers were below the estimates and the market reacted to it negatively, showing a gap-down move. Furthermore, the price action has witnessed the long unwinding and the buyers look trapped and are in a state of fear. In yesterday’s session, buyers tried to retain the swing of $90, but a throwback led to rejection and an inverted hammer candlestick was formed highlighting sellers’ dominance.
Will EMR Stock Hold Trajectory Lows of $80?
On the daily charts, EMR stock price is in a downtrend and slipped below the significant moving averages. Furthermore, the price action shows a breakdown and a failure during the rebound in the yesterday session.
At press time, EMR stock price is trading at $85.20 with an intraday gain of 0.53%, showing neutrality on the charts. Moreover, the trading volume increased by 0.67% to 4.765 Million while the market cap is $48.692 Billion. Analysts have maintained a buy rating with a yearly target price of $107.06, suggesting a growth outlook.
The price action shows that EMR stock is trading in the bearish trajectory and a further drop toward the demand zone of $80 is imminent. Moreover, the price action highlights short buildup activity which is a negative sign.
The RSI curve stayed in the bearish trajectory and formed bearish divergence on the charts. Moreover, the chart shows a downtrend; a further fall towards $80 is anticipated.
The MACD indicator shows a bearish crossover and formed red bars on the histogram suggesting a negative outlook for the upcoming sessions.
Summary
EMR stock price is trading below the significant moving averages and is showing a downtrend. Furthermore, the price action is shows short buildup as the buyers are failing to sustain the gains.
Technical Levels
Support Levels: $80 and $78
Resistance Levels: $90 and $92
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/11/10/emr-stock-nyse-emr-failed-to-scratch-87-affecting-q4-dull-results/