Emerson Electric is a company that brings technology and engineering together to provide solutions for customers in a range of industrial, commercial and consumer markets around the world. Co. 's segments are: Automation Solutions, which provides measurement and analytical instrumentation, valves, actuators and regulators, industrial solutions and systems and software; Climate Technologies, which provides products and services for residential heating and cooling, commercial air conditioning, commercial and industrial refrigeration, and cold chain management; and Tools and Home Products, which provides provides tools for personnel and homeowners and appliance solutions.
When researching a stock like Emerson Electric, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from EMR Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for EMR stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the EMR 200 day moving average ("EMR 200 DMA"), while one of the most popular "shorter look-backs" is the EMR 50 day moving average ("EMR 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Emerson Electric. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the EMR 200 DMA and the EMR 50 DMA, we get a moving average convergence divergence indicator ("EMR MACD"). The EMR MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis