Potentially underway to form a new higher low, $98-$100 would offer better risk-reward

Emerson Electric’s share price closed Thursday’s session at $105.98 a share. The weekly chart signals a pattern of higher lows followed by higher highs, with what now seems like a downward move to form potentially yet another higher low. The support level in focus is the level of $103.88 (marked by oval). A break of this support is likely to see an extended pullback towards the trendline support, currently reading around $97.85. Only a break below the trendline would create concerns for further declines. However, any signs of consolidation could be an opportunity for another leg higher. From current levels, the primary resistance is the all-time high of $116.76. However, the present sentiment does not offer any indication of this price being reached in the near term. This is highlighted by the technical indicators, the MACD has now crossed below its moving average, suggests a shift in mometum. The RSI has also faltered significantly as it now reads 50. A decline towards $98-$100 a share followed by some consolidation would offer a much better risk to reward for the longer term.