Air Products and Chemicals, Inc. (APD)

APD stock forecast: buy or sell

APD stock outlook

  • Air Products and Chemicals closed today at $285.69 after sinking a -2.64%.
  • The price is currently under the lower Bollinger band, which usually indicates a short-term rebound that you should not try to trade
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $165.41. Up to date, shares made a 72.72% profit since the beginning of this rally
  • Evercore ISI published a buy rating for Air Products and Chemicals on Monday
  • Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide.
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Please read:
The opinions expressed in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this document does not have any knowledge of the particular positions of the reader, his or her finances or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are provided for general educational purposes only

APD stock charts overview

Should I buy Air Products and Chemicals stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is APD stock a buy?

Currently, Air Products and Chemicals stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean APD will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

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Should I sell Air Products and Chemicals stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Similarly to when we have to buy shares, choosing when is appropiate to sell is not a whimsical decision, and we must follow our own trading strategy. We like very simple strategies to guide us on when is the best time to sell our shares. Be aware that these strategies are not intended for shorting Air Products and Chemicals stock

A golden rule is that you should never keep a trade that shows a higher than expected losses at the time of the buy. The timing to sell shares should always be ruled by the stop-loss (automatic or manual)

Is it time to sell Air Products and Chemicals stock?

In the current situation of Air Products and Chemicals there is not any eligible sell setup, so Air Products and Chemicals stock holders with operations in profit can keep their positions

Price lost SMA50 level

Since Air Products and Chemicals crossed up the 50-day MA last April stock gained a 36.92%. But that bullish trend may be over, or be showing signs of running out, by now that the price dropped below that moving average level today. For medium-term investors who benefited from the stock during the time the price was above the average, this signal should be a wake-up call and a trigger to sell the stock and get their profits

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Analysts' recommendations to buy or sell Air Products and Chemicals stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, just one brokerage rating was published for Air Products and Chemicals

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Air Products and Chemicals ratings

Brokerage firmRating
Sep 21st, 2020
Evercore ISI Buy

Technical analysis

Since last March, Air Products and Chemicals has been drawing an uptrend that by now marked an amazing 72.72%. During this uptrend, the price offered some entry points on the breakouts. Latest pullback was in early August, when price bounced at $274.56. Currently, the price swings in a consolidation between its last top ($310.74) and its last bottom ($274.56)

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Market investors use support and resistance levels as a way to find price points on a chart that may act as glass ceiling, preventing the price of an asset to move in certain direction. Supports are levels where the price may find support as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue descending until meeting another support level. On the other side, resistances are where the price may find resistance as it rises. Likewise, this means that the price is more liable to "rebound" at this level, and if it finally breaks this level, it will rise easily until it finds the next resistance

The current resistances are:

  • R1: $299.82 (4.95% above)
  • R2: $310.74 (8.77% above)
  • The current supports are:

  • S1: $274.56 (-3.9% below)
  • S2: $253.91 (-11.12% below)
  • S3: $251.12 (-12.1% below)
  • Bollinger bands

    So-called Bollinger bands are a popular technical strategy created by John Bollinger. In essence, the Bollinger Bands are lines that fluctuate around a centralmoving average, varying the distance from the bottom to the top depending on market volatility. They are usually plotted by an interval of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    When the price moves out of the band (above the upper line or below the lower line) it tells that the price is maintaining a very strong momentum and therefore can correct the trend to the average. In this case, the price is below the upper band, which should mean a short-term bounce off (at least) until it is back above the band

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. It is intended to map the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Like other oscillation indicators, the RSI ranges between 0 and 100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by traders

    The RSI dropped below the overbought level of 70 on September 3 after just crossing to the overbough zone for a single day (weak signal). The RSI reading today was 42.43. Since then, Air Products and Chemicals price collapsed a 7.93%

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    Earnings and financials

    APD hosted the quarterly investors call and posted the Q2 report in late July. APD surpassed consensus earnings estimates and posted a per-share earnings of %s of $2.01, that is a 1.01% increase versus the previous forecasts of $1.99. Reported revenues were $2.1 billion versus estimates of $2.1 billion.

    This compares to earnings of $2.17 per share same quarter last year, so current EPS is a decrease of -7.37%. Revenue inched down a -7.14% on an annualized basis in the second-quarter, from $2.2B to $2.1B last quarter.

    APD is hosting the earnings call on early next November. Forecasted earnings of %s a share for this quarter is $2.19. Financial reporting day has an additional risk for stock traders as the information posted can gap up or down the price with exceptionally low volume and not honouring your buy/stop-loss orders. It's always good to review company's website to confirm time and details about the earnings call and the earnings report.

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