Emerson Electric Is Shorting Out

EMR broke down from a right triangle on huge downside volume

   

Emerson Electric Co. (NYSE:EMR) — This scientific and technical instruments designer and manufacturer’s fiscal Q2 results widely missed analysts’ targets. Weak economic conditions in China and Europe were blamed for the miss. Analysts lowered their projections for 2012 and 2013.

Technically EMR broke down from a right triangle on huge downside volume. Support exists in the low $40s and that is our target for a short sale. Stop-loss orders should be entered at $50.

As with all short sales, be sure to check with your brokers for the ability to borrow the stock. Short selling is a speculative trading strategy that involves higher-than-normal risk.

Trade of the Day – Emerson Electric Co. (NYSE:EMR)
Click to Enlarge

Trade of the Day Chart Key


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/trade-of-the-day-emerson-electric-co-nyse-emr/.

©2016 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.