Trading Tips: EMN – Eastman Chemical Co.

Day Trading Tips EMN Chart Sept 7th

EMN Eastman Chemical Could Be a Great Play

We at High Frequency Trading Profit are liking the EMN long here because of the support range at $55.93 down to 54.50. The Stock is at all time highs and has shown that it can make 40% gains in a single month. At $57.37 a stop loss of around $3 could yield a return well over 3-1. Of course there are always those who prefer the short side, but we don’t really see any play here for the bears unless they are going to take a few pennies in front of the $58 level. Even then, its a strategy that requires quick fingers or you could be looking at a 10 cent loss for a 5-8 cent gain, which is obviously bad risk management.

Just recently the company announced that its Frost & Sullivan award-winning Saflex┬« S series solar absorbing polyvinyl butyral (PVB) interlayer has received a second recognition: The Skin Cancer Foundation’s Seal of Recommendation. The product essentially helps protect people from skin cancer by filtering UVA exposure through laminated glass used in places like car windshields.

The global specialty chemicals company also produces a profusion of additives, fibers and advanced materials found in every day common consumer products. They employ about 13,500 people serving over 100 countries. This global leader shows sound pro forma revenue of almost $10 Billion.

Eastman is also know for its acquisitions, which makes it a good growth stock

Pretty solid at first glance, but as always, make sure you do your homework if you are holding overnight.

Great Minds think alike – Eastman is also the Chart of the Day at Total Investor, who point out that Wells Fargo reconfirmed its “Outperform” rating, as well as the fact the Lazard has a buy target of $67.

On The Flip Side, Top Stocks Picks published a blog post yesterday about a large influx of short sellers on 3 stocks: SPN, EMN, and MON. They Point out that DOW Chemical has a higher dividend and that weakness in LCD screens could cause a loss of earnings. However, they too feel this is not enough to short the stock on.

Next to a class action suit regarding a common chemical among the 3, we do not feel we need to worry about the short sellers either. After all, that’s what stop losses are for, and of course anyone who has lived a day in the life of a swing trader knows that a lot of shorts can make for a really good squeeze.

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