• Chart of the Day: Eastman Chemical Co. (EMN)

    by  • November 9, 2012 2:32 pm • Charts to Watch, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart is of Eastman Chemical Co. (EMN) which engages in the manufacture and sale of chemicals, plastics, and fibers in the United States and internationally. The company operates in four segments: Coatings, Adhesives, Specialty Polymers, and Inks (CASPI); Fibers; Performance Chemicals and Intermediates (PCI); and Specialty Plastics.

     

    Ticker:  Eastman Chemical Co. (EMN)

    Strategy:  Long Trade

    What I Am Looking At:

    • Monthly chart shows recent breakout from ascending triangle
    • Just made an all-time high
    • Outperformance, up more than 44 percent year-to-date
    • Gapped higher on 10/26 on EMN’s call for above consensus guidance
    • Pulling back to gap, which could act as support
    • 40-day moving average (red line on daily) could also act as additional support
    • Schaeffer’s Open Interest (SOIR) put/call ratio stands at 1.21, which ranks in the 92nd percentile of all readings taken during the past year which indicates an extreme preference for puts versus calls
    • The 50-day buy-to-open put/call ratio indicates nearly 2 puts have been purchased versus 1 call during the past 50 days.  This is also showing extreme pessimism.
    • 6 out of 13 analysts who cover EMN rate the shares a “hold” or worse

    Trigger:  Pullback to the 40-day moving average

     

    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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