A few days after finally taking out its 200 day moving average Eastman Chemical took a nasty post earnings spill on July 26th. The stock went on to lose ground the next eight sessions. Last week EMN began to retest major support near the 2018/2019 lows. Today the stock reached a new August low before reaching the $65.00 area. This key zone held the May/June 2019 lows.
At this week’s low EMN was down over 35% from the September highs and 20% from the 2019 peak. We regard EMN as a fairly low risk buy near current levels. A close back below $64.00 would be a clear warning sign.