| Eaton is a power management company. Co.'s segments are: Electrical Products and Electrical Systems and Services, which consists of, among others, electrical components, industrial components, residential products, single phase power quality, emergency lighting and fire detection; Hydraulics, which provides hydraulics components, systems and services; Aerospace, which supplies aerospace fuel, hydraulics, and pneumatic systems; Vehicle, which designs, manufactures, markets, and supplies drivetrain, powertrain systems and components; and eMobility, which designs, manufactures, markets, and supplies electrical and electronic components and systems. |
When researching a stock like Eaton, 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 ETN 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 ETN 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 ETN 200 day moving average ("ETN 200 DMA"), while one of the most popular "shorter look-backs" is the ETN 50 day moving average ("ETN 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Eaton. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the ETN 200 DMA and the ETN 50 DMA, we get a moving average convergence divergence indicator ("ETN MACD"). The ETN 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).