Emerson Electric Co - Chart of the Day | May 08, 2008 | By Casey Murphy

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Emerson Electric Co - Chart of the Day

May 08, 2008 | By Casey Murphy

For today's chart we've chosen to take a look at Emerson Electric Co. (NYSE:EMR) because it recently broke out of an inverse head-and-shoulders pattern. A break above an established level of resistance, known as a neckline, is often followed by an increase in buying pressure because it is a sign that the bulls are in control of the direction. As you can see from the chart below, the bulls did indeed push the price above the neckline, but it has recently fallen back toward the breakout point.

It is important to note that the retest of the support is also known as a throwback and it is a commonly witnessed before the stock continues its move higher. We'll keep a bullish outlook on this stock until the price closes below the identified trendline.