Eaton Corp. (NYSE: ETN) — This diversified industrial manufacturer of electrical systems and components for various power systems has been in a bull market since March 2009. But a correction last summer almost derailed its recovery until it broke from a consolidation in September, and climbed steadily to a new high at over $56.�
Since then, it has hugged its 20-day and 50-day moving averages, but failed to make new highs while its lows have been higher. This is the hallmark of the symmetrical triangle, a bullish chart pattern.�
Its slow stochastic indicator is now arching up as the stock appears to be aiming for a breakout at $56. If successful, the breakout could result in a drive to $62, which is the technical target. S&P has a �four-star buy� on ETN with a 12-month target of $62.
If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net.
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