Shouldn't the stock start going back up soon?
The market is looking a little bearish right now.
The DOW broke through its support level of 10400 and
now is become its resistance. I look for it to drop back
to 9600 - 9200 level to consolidate, before going back up.
Eaton's old short term level of support was around 92, and
it broke through it. The level of 90 is acting like a
resistance level for Eaton right now. Things are looking
bearish for Eaton right now, but anything is possible.
ETN's long term support is 85.00 - 84.50 If ETN breaks up
through 90, in a solid way, I would say ETN would probably
go back up. But if ETN breaks through the 84.50 level,
in a solid way, I don't see it stopping until it lands
around 72.00 - 66.00 level. There was no level of support
established between 66.00 and 85.00 when ETN last ran up
from those levels. But, the short term trend, I expect all
stocks to drop, since people will most likely sell a portion
of their portfolio, to go liquid, due to Y2K. Their
thinking is better safe than sorry. The DOW breaking
through its support level seems to indicate this trend of
selling before the year out, has already started. If it
were not for the Y2K, I would think ETN would consolidate
and then go up. But in the short term run, I expect ETN to
drop back to 66.00 When things appear ok, after the first
of the year, I expect stocks to soar fast, back up to
previous levels. |
