Part of the reason why the market has been frustrating for many charts of late, in terms of individual stock action, has been that many charts are working through longer-term consolidation patterns. As an example, with a tip of the hat to several 12631 members who pointed out the improved action in the chemicals space, Eastman Chemical is working though a giant cup and handle formation right below all-time highs.
I do not expect an immediate breakout, but rather price is likely to come to terms at this major resistance level. Seeing as the prior trend on this long-term timeframe is broadly higher, the presumption is that the cup and handle is a bullish consolidation before we eventually resolve to new highs. In the interim, it can be quite a tedious process of trading while you are just another brick in the technical base being built. Continuing with the theme here, a little bit of patience goes a long way. Blasting through and holding above $55 is the trigger, it’s just that to presume it will happen right away leads to many a trader getting chopped up given that EMN has rallied in essentially a straight line up to resistance over the past several weeks.
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