Dow stock: buy or sell
Jan 27th, 2021
Dow stock brief
- Counting on Tuesday, it's been 4 consecutive sessions in red for Dow. Price closed on Tuesday at $55.74 after collapsing a -2.60%.
- Dow is presenting its earnings report on Thursday
- The stock is configuring an uptrend pattern since last October, when it bottomed at $43.78. This rally marked a 27.32% gain
Should I buy Dow stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. 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 $DOW stock a buy?
Currently, Dow stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean we expect a selloff for $DOW in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Dow stock?
Knowing when to sell a stock is even harder than knowing when to buy it. Similarly to when we have to buy shares, determining when is appropiate time to sell is not a fickle decision, and we must adhere our own trading strategy. When selling, as well as buying, detailed strategies are very easy to use and are only valid for selling shares in your porfolio, not for selling short Dow stock
As a golden rule, you should not mantain a trade that results in greater losses than those expected at the time of the buy. When to sell shares must always be dictated by the stop-loss (automatic or manual)
Is it time to sell Dow stock?
In the current situation of Dow there is not any eligible sell setup, so Dow stock holders with operations in green can keep their positions
We don't have any rating published in the previous 30 days for Dow
Dow stock analysis
Dow shares started an uptrend last October, and gained a gorgeous 27.32%. The price shows rising tops and bottoms, and along the way provided very few buy points for those who wanted to invest. Latest pullback was in early December, when price bounced at $52.69. Like in all uptrends, price needs to take breath and now price is consolidating the gains in a range between $61.31 and $52.69
Supports and resistances
The current resistance levels are:
The current supports are:
Since the price surpassed the upper band on January 13, the price has corrected downwards by 9.08%
Relative strength index
The RSI dropped below the overbought level of 70 on January 13 after just crossing to the overbough zone for just one day (weak signal). The RSI value on Tuesday was 45.98. Dow stock sank a 8.68% since RSI lost the overbought zone
Dow stock price history
Dow went public priced at an adjusted price1 of $47.46 on Mar 2019. Since then, DOW stock surged by 17.45%, with an average of 17.45% per year. If you had invested $1,000USD in Dow stock on the IPO, it would have a value of $1,174.46 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Dow stock
Nobody knows how much a stock will be priced in the future. Banks and financial organisations issue their analysis forecasting how a particular stock will performance in the future.
Along with buy or sell recommendations, brokerage institutions release their price target based on the stock price action and the company fundamental data. Most of these predictions follow the release of new fundamental information by the company, and usually. Again, these predictions are not direct recommendations for individual investors and should not be trusted blindly.
In the previous month we couldn't find any price target published for Dow stock.
Earnings and financials
Dow ($DOW) presents earnings report on Thursday. Expected for this quarter is $0.66, compared to $0.50 that was reported for Q3. Revenue projections for are $10.0 billion.
Financial reporting day has a more than usual risk for traders as the data provided can gap up or down the price with exceptionally low volume and not honouring your buy/stop-loss orders. Dow's website probably has additional information.
Last October, Dow Inc. ($DOW) posted adjusted EPS for that strongly beat Market expectations. Quarterly EPS was $0.50 per share versus the estimated $0.33. This quarterly report means an earnings surprise of 51.52%. On the contrary, reported sales were $9.7 billion, consistent with analysts' estimates.In contrast, the EPS for the same quarter last year was $0.91, so posted EPS is a decrease of -45.05%. Revenue went down a -9.77% on an annualized basis in the , from $107.6B to $97.1B last quarter.
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 text does not have any knowledge of the individual situations of the reader, his or her financial statements 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 Comments are provided for educative purposes only
|Tuesday, January 26th, 2021|
|Day range||$55.7 - $58.25|
|Average true range||$2.44|
|50d mov avg||$55.40|
|100d mov avg||$51.59|
|200d mov avg||$45.10|
|Earnings date||January 28th, 2021|