Emerson Electric (EMR) were upgraded to an overweight ("buy") rating at Morgan Stanley a week ago. The company was named the 2023 ENERGY STAR Partner of the Year for Energy Management Tuesday. Lot's of media attention but in my review of March 21 I wrote that "Fundamental analysts can be comfortable recommending stocks in downtrends but technical analysts are not."
Let's visit the charts again.
In this updated daily bar chart of EMR, below, I see a choppy trading pattern the past few weeks. Prices are trading below the declining 50-day moving average line and below the declining 200-day line.
The On-Balance-Volume (OBV) line shows a decline over the past 12 months and that suggests that sellers of EMR are more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is in a bearish alignment below the zero line.