Shares of Eastman Chemical (EMN) have been working lower since a late-June peak (see the chart below).
The On-Balance-Volume (OBV) line has been eroding for months, telling us that sellers are more aggressive. Volume was heavier on days when EMN closed lower. The slopes of the 50-day and 200-day moving averages are negative, telling us that the trend is down. Unfortunately, we cannot find any bullish divergences between the price action and the momentum study. Yes, this all sounds bearish, but a longer-term chart may yield other worthwhile observations.
In this weekly chart, above, of EMN we can see a big rounded top from 2013 to 2014 and 2015. A big top tends to produce a big drop, but look at the support in the $50 to $45 area. While this area is relatively old, it also represents a 50% retracement from the 2014 top. While we saw no bullish divergences on the daily chart of EMN, the weekly chart, above, is different. Here we can see higher lows from the weekly momentum study -- the rate of decline in prices is slowing on this timeframe. A 50% retracement and a bullish divergence might be just enough support for EMN to begin to build a base.