Manufacturing and engineering company Emerson Electric (EMR) has been steadily climbing up the relative strength rankings in the SIA S&P 100 Index Report since September and recently returned to the Green Favored Zone for the first time in a year. Currently in 17th position, Emerson has climbed 20 spots in the last month.
Last month, a year-long downtrend in Emerson Electric (EMR) shares bottomed out near $72.50, and since then, they have been under renewed accumulation, establishing a recovery trend of higher lows. This month, EMR has completed a base with a breakout over $90.00 and snapped a downtrend line, confirming the start of a new upward trend.
Initial upside resistance appears near the $100.00 round number, followed by the August 2021 peak near $102.50, and then $107.50 based on a measured move from the base. Initial support has moved up to the $90.00 breakout point from $87.50.
Emerson Electric (EMR) shares have staged a big turnaround in the last few weeks. A year of distribution finally bottomed out last month when support came in at a previous breakout point near $71.75. Since then, EMR has been on the rebound rallying up above $94.00 without even a 3-box correction. Along the way, the shares have completed a bullish Triple Top pattern, built a bullish High Pole and snapped a downtrend line.
Based on vertical and horizontal counts combined with retests of previous column highs, next potential upside resistance for EMR appears near $98.50, $104.55, and the $100.00 round number.
With a perfect SMAX score of 10, EMR is exhibiting strength across the asset classes.
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