Emerson Electric Co. (EMR) was reviewed in the latter part of June, where I wrote that "If you are looking to go long EMR I would suggest that after a successful test of the 200-day line at $68 risking to $65. Otherwise, wait for a breakout over $74."
EMR tested the 200-day average line in late June and for much of July before restarting its uptrend. In August, EMR broke out above $74. Everyone should be long and enjoying the ride.
Let's review the charts again to see if everything is still going strong.
(For more on EMR, see The Truth About Trade: Cramer's 'Mad Money' Recap.)
In this daily bar chart of EMR, below, we can see how prices broke out of a large ascending triangle formation in August. The triangle pattern starts in December. There are equal highs around $74 and higher lows in April, May, June and July.
Prices are above the rising 50-day moving average line as well as the bullish 200-day line.
The daily On-Balance-Volume (OBV) line has been in a strong rise for much of the past 12 months and tells us that buyers of EMR have been more aggressive.
Recently the 12-day price momentum indicator has slowed so traders may see prices stall a bit in the short-run.
In this weekly bar chart of EMR, below, we can see a bullish set-up. Prices are and have been above the rising 40-week moving average.
The weekly OBV line is strong and pointed up as is the bullish MACD oscillator
In this Point and Figure chart of EMR, below, we can see a breakout at $75.21, and an upside price target of $88.24.
Bottom line strategy: Continue to hold longs. Consider raising stop protection to the breakout point at $74 or your cost basis. $88 is our price target.