Wall Street Traders Column 9/26/05 - Buy EMR
September 26th, 2005 / 6:36 pm / by Harry Aloof
Buy Alert - EMERSON ELECTRIC CO (EMR - NYSE ) Report No. 2137, Analysis by Harry Aloof - Technical Viewpoint - From a low of $65.63 on Aug 31, 2005 prices rallied, reaching a high of $68.80 on Sep 8, 2005. A decline saw prices pull back, reaching a low of $66.26 on Sep 15, 2005. Another rally saw prices penetrate resistance line “A”, closing 9/23/05 at $69.61. Technicals: MACD Index (MACD): A Buy Alert! was given on Sep 23, 2005 (study not shown) when the solid line crossed the dotted line to the upside. Support: Remains at $66.00. Resistance: Is at None at current levels. Point & Figure: Reversed to the upside on Sep 23, 2005. A P&F downside reversal takes place at $66.00. Summary: Technical indicators have turned bullish. BUY! EMERSON ELECTRIC CO (EMR-NYSE) @ $70.13 Stop: Use a protective stop of $67.63. EMERSON ELECTRIC CO is currently trading @ $69.61 plus $1.85 on Sep 23, 2005. Price Objective: $82.50. Risk/Reward: $2.50 VS. $12.37. Today’s Risk Reward Ratio: 5:1
