EMN | Long Setup | Technical Breakout Watch Despite Weak Fundamentals | (May 2025)
1️⃣ Short Insight Summary:
Eastman Chemical (EMN) has been in a downtrend for a while, and while the fundamentals look weak, the chart is showing a potential breakout setup. This idea is more technical than fundamental, and caution is advised.
2️⃣ Trade Parameters:
Bias: Long (only on breakout)
Entry: Watching for confirmation above current resistance
Stop Loss: Tight stop, near entry depending on breakout level
TP1: $87
TP2: $98
TP3: $101
TP4: $111
3️⃣ Key Notes:
Eastman's revenue is $9.4B, with net income at $900M and EPS around $7.90. The dividend yield is high at 4%, which signals that the company is trying to attract investors with yield rather than growth. However, this comes with red flags: high debt of $5.5B, negative cash flow, and weak fundamental momentum. This raises concerns of long-term sustainability. On a fair value basis (tangible assets), the stock could be worth closer to $10.47 — quite a gap from its current price.
Despite this, technicals show that if the price breaks the current resistance level, a short-term bounce could follow. This would be a small, speculative trade with quick exits at each take-profit level. Earnings are expected to show mild growth annually, but quarter-to-quarter it's still uncertain.
4️⃣ Optional Follow-up Note:
This is a low-conviction idea and not one I'd prioritize. I’m considering a small position if the breakout happens, but many other stronger setups are on my watchlist.
Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible.
Disclaimer: This is not a financial advise. Always conduct your own research. This content may include enhancements made using AI.
1️⃣ Short Insight Summary:
Eastman Chemical (EMN) has been in a downtrend for a while, and while the fundamentals look weak, the chart is showing a potential breakout setup. This idea is more technical than fundamental, and caution is advised.
2️⃣ Trade Parameters:
Bias: Long (only on breakout)
Entry: Watching for confirmation above current resistance
Stop Loss: Tight stop, near entry depending on breakout level
TP1: $87
TP2: $98
TP3: $101
TP4: $111
3️⃣ Key Notes:
Eastman's revenue is $9.4B, with net income at $900M and EPS around $7.90. The dividend yield is high at 4%, which signals that the company is trying to attract investors with yield rather than growth. However, this comes with red flags: high debt of $5.5B, negative cash flow, and weak fundamental momentum. This raises concerns of long-term sustainability. On a fair value basis (tangible assets), the stock could be worth closer to $10.47 — quite a gap from its current price.
Despite this, technicals show that if the price breaks the current resistance level, a short-term bounce could follow. This would be a small, speculative trade with quick exits at each take-profit level. Earnings are expected to show mild growth annually, but quarter-to-quarter it's still uncertain.
4️⃣ Optional Follow-up Note:
This is a low-conviction idea and not one I'd prioritize. I’m considering a small position if the breakout happens, but many other stronger setups are on my watchlist.
Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible.
Disclaimer: This is not a financial advise. Always conduct your own research. This content may include enhancements made using AI.
2 Ways I can help you | Real Trades. Real Edge
1️⃣ The 4 Steps to Improve Your Trading Immediately: tradinggen.services/mohamad-link/
2️⃣ Get trade setups & breakdowns Here: t.me/TradeSimple_with_Mo
1️⃣ The 4 Steps to Improve Your Trading Immediately: tradinggen.services/mohamad-link/
2️⃣ Get trade setups & breakdowns Here: t.me/TradeSimple_with_Mo
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
2 Ways I can help you | Real Trades. Real Edge
1️⃣ The 4 Steps to Improve Your Trading Immediately: tradinggen.services/mohamad-link/
2️⃣ Get trade setups & breakdowns Here: t.me/TradeSimple_with_Mo
1️⃣ The 4 Steps to Improve Your Trading Immediately: tradinggen.services/mohamad-link/
2️⃣ Get trade setups & breakdowns Here: t.me/TradeSimple_with_Mo
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.