ISIN: US26078J1007

DowDuPont Inc. is a chemical company from the USA that is active in approx. 80 countries and is one of the largest companies in this branch. The corporation was formed in September 2017 by a fusion between Dow Chemical and its competitor DuPont, and is set to be split up into three independent companies for agricultural chemicals, plastics and specialty chemicals.

The following analysis examines the stock of the company from a technical perspective.

Review

Following its rise of several years, in January 2018, the stock reached its preliminary high point. Subsequently, a clear downward trend formed and the price sustainably fell below the 200 average line, closely observed by the big market participants. Currently, the DowDuPont stock is in the correction of the last downward movement.

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Outlook

In order to find a lucrative entry in the short direction, to start with, a further correction to the SMA 200 would be desirable. Following this, the upward trend that is currently underway in the subordinate hourly chart should then complete a trend reversal (blue arrow). An entry can then be made either at the point 2 or in the subsequent correction, with a stop at the point 3 that will have formed by then.

The target areas are located at approx. 62 USD, 60 USD and 57 USD (green zones).

If the value clearly and sustainably rises above 74.30 USD, then the short scenario should be abandoned (red line).

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Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the development of the overall market.

Disclosure of possible conflicts of interest: at the time of publishing this analysis, the author is not invested in the securities or underlyings discussed.

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