Chemical companies like DuPont de Newmours and Dow are showing weakness due to a slowing demand. DuPont shares ended yesterday’s trading session at a monthly minimum, down 7% in the second half of November. At the moment, the issuer’s quotes are trading at a premium of 3.5% to the October 52-week low. Previously, the company confirmed organic sales growth for 2019, which is slightly lower than last year, and also adjusted annual earnings per share to $3.77–3.82. Over the past week, DuPont shares fell 1.42%. Over the same period, the S&P 500 index grew by 0.66%.
Support and resistance
The stock is dominated by “bearish” sentiment. #DD quotes approached key extremes. Currently, the local support and resistance levels are 65.00 and 67.50, respectively. There is potential for further decline. Indicators indicate the strength of sellers: the price has fixed below MA (50) and MA (200); MACD is in the negative zone. It is better to open the positions from the key levels.
A comparative analysis of the multiples of the company and competing companies in the industry indicates the neutrality of #DD.
Resistance levels: 67.50, 70.00, 73.00.
Support levels: 65.00, 63.00.
Pivot Classic Fibonacci Camarilla Woodie DM
S3 48.92 57.90 63.44 53.03 —
S2 57.90 61.33 64.26 57.95 —
S1 61.90 63.45 65.09 62.01 59.90
P 66.88 66.88 66.88 66.93 65.88
R1 70.88 70.31 66.73 70.99 68.88
R2 75.86 72.43 67.56 75.91 —
R3 84.84 75.86 68.38 79.97 —
Trading Ideas
Short positions may be opened after the price consolidates below the level of 65.00. The closing of the profitable positions is possible at the levels of 63.00, 61.00 and 60.00. Stop loss will be located at 67.00.
Long positions may be opened after the price consolidates above the level of 67.50 with the targets at 71.00–72.50. Stop loss should be set at 65.50.
Implementation period: 3 days.
Nov-15-19 Reiterated Cowen Outperform $77 → $83
Sep-10-19 Initiated Jefferies Buy $85
Aug-30-19 Upgrade Exane BNP Paribas Neutral → Outperform
Aug-20-19 Reiterated Cowen Outperform $83 → $77
Jun-25-19 Resumed Monness Crespi & Hardt Neutral
Jun-10-19 Initiated Cowen Outperform $83
1 Day Moving Averages
Name Value Action
Exponential Moving Average (5) 65.43 Sell
Simple Moving Average (5) 65.36 Sell
Exponential Moving Average (10) 66.30 Sell
Simple Moving Average (10) 66.24 Sell
Exponential Moving Average (20) 67.19 Sell
Simple Moving Average (20) 68.47 Sell
Exponential Moving Average (30) 67.53 Sell
Simple Moving Average (30) 67.77 Sell
Exponential Moving Average (50) 67.93 Sell
Simple Moving Average (50) 67.86 Sell
Exponential Moving Average (100) 69.10 Sell
Simple Moving Average (100) 68.75 Sell
Exponential Moving Average (200) 72.22 Sell
Simple Moving Average (200) 71.93 Sell
Ichimoku Cloud Base Line (9, 26, 52, 26) 68.86 Neutral
Volume Weighted Moving Average (20) 68.46 Sell
Hull Moving Average (9) 64.88 Buy
1 Day Oscillators
Name Value Action
Relative Strength Index (14) 39.12 Neutral
Stochastic %K (14, 3, 3) 6.67 Neutral
Commodity Channel Index (20) −86.80 Neutral
Average Directional Index (14) 18.75 Neutral
Awesome Oscillator −2.08 Sell
Momentum (10) −4.92 Sell
MACD Level (12, 26) −0.85 Sell
Stochastic RSI Fast (3, 3, 14, 14) 3.96 Neutral
Williams Percent Range (14) −91.22 Buy
Bull Bear Power −3.67 Neutral
Ultimate Oscillator (7, 14, 28) 29.72 Sell
