Eaton (ETN) has made a really impressive advance since early 2016, but the latest charts and indicators suggest further gains still lie ahead for the power management company.
In this daily chart of ETN, above, we can see a nice uptrend in place from the late June low and a stronger/faster rally that began in early November. The rising 50-day moving average line has provided buying opportunities several times in November, January and March. The rising 200-day moving average line was tested twice in the past year and prices quickly rallied back above the line.
The daily On-Balance-Volume (OBV) line shows a positive slope the past year as buyers of ETN have been more aggressive, with heavier volume seen on days when ETN has closed higher. The Moving Average Convergence Divergence (MACD) oscillator has been positive since November and just turned up to a fresh outright buy signal.
In this weekly chart of ETN, above, we can see that prices are above the rising 40-week moving average line. The weekly OBV line has moved up with the price action, both confirming the move higher and telling us the bulls are voting with volume. The MACD oscillator is positive and has been since last April.
In this Point and Figure chart of ETN, above, we can see a large 2-1/2-year base pattern with a recent double top breakout. It looks like $86 is the potential upside target from this pattern.
Bottom line: Traders and investors could approach the long side of ETN at current levels risking a close below $70. We look for further gains to mid-$80s for ETN in second quarter.