Eaton Corporation (ETN US)

Eaton is an intelligent power management company that makes products for the data centre, utility, industrial, commercial, machine building, residential, aerospace, and mobility markets. Founded in 1911, Eaton operates in 35 countries and sells products to customers in more than 160 countries.

- By Peet Serfontein, Khumbulani Kunene

Technically, a price in wave b of an Elliott Wave pattern presents a promising investment opportunity (see notations on the main chart). Within a bullish Elliott Wave setup, this can be regarded as a positive indicator as it represents a corrective phase before the final Wave 5 advance.

The weekly price swing heatmap also supports our bull case. From mid-April to mid-June 2025, ETN has demonstrated a bullish bias, with four out of six weekly swings turning positive (green), suggesting renewed upward momentum following a brief consolidation period.

Upside price momentum per the MACD histogram, as well as the recent sideways trajectory of the on-balance volume (OBV) indicator, also supports our bullish view.

Technical analysis

The lower panel shows the appearance of the Three Outside Up Japanese candlestick pattern, denoted by a reading of one. This pattern signals a strong reversal from a prior downtrend or consolidation phase.