Linde plc (LIN)

Linde stock forecast: buy or sell

Linde stock outlook

  • Linde closed today at $233.15 (-2.13%) prior to presenting financial results at
  • Linde gained a -5.26% in 4 consecutive sessions in positive
  • The price is currently below the lower Bollinger band, which often indicates a near-term rebound that you should not try to trade
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $145.47. This rally marked a 60.27% gain
  • Evercore ISI published a buy rating for Linde on Monday
  • Linde plc operates as an industrial gas company in North and South America, Europe, the Middle East, Africa, and the Asia Pacific.
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Important:
The comments expressed in this article are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this report does not know the specific conditions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for educative purposes only

Linde stock charts overview

Should I buy Linde 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 LIN stock a buy?

Currently, Linde 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 LIN in the next few days, or that it may not climb higher. Simply, it doesn't match our recommended trading systems

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Should I sell Linde stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies allow us to avoid impetuous decisions based on our emotions or the noise surrounding the market. We like very simple strategies to guide us on when is a good moment to sell a stock. Be aware that these strategies should not be used for shorting Linde stock

As a rule of thumb, you should never keep an open trade that results in higher than expected losses upon purchase. The timing to sell your stock always has to be ruled by the stop-loss (automatic or manual)

Is it time to sell Linde stock?

Currently, Linde stock doesn't match any of our preferred sell setups, so if you own Linde stock and your operation is in profit probably is not time to sell now

Price lost SMA50 level

Linde stock gained 35.65% in 3 months while it was above the 50-d SMA. But that uptrend may be over, or show signs of weakening, since the price lost that moving-average level on Monday. For medium-term investors who have benefited from the gains while the price was over the average, this flag should be a heads up and a trigger to sell the stock and cash in on their profits

Price broke down below last bottom

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Analysts' recommendations to buy or sell Linde 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 30 days, just one analyst rating was published for Linde

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Linde ratings

Brokerage firmRating
Sep 21st, 2020
Evercore ISI Buy

Technical analysis

Linde shares started an uptrend last March, and grew a gorgeous 60.27%. During this uptrend, the price provided some buy points on the breakouts. Latest low was in mid-August, when price bounced at $239.34. Saddly, LIN could not resume the uptrend after marking a top at $260.49, and dropped breaking down its last bottom on Monday

SMAs overview

Moving averages are simple indicators for investors to detect stock momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages. Learn more about Moving Averages from sources like Wikipedia and Investopedia

Supports and resistances

Investors use supports and resistances to identify price points on a chart that may work as barriers, preventing the price of a stock to move up or down. Supports are levels where the price tends to stop as it falls. This means that the price is more likely to "bounce off" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until approaching another support level. On the other side, resistance levels are where the price tends to find resistance as it rises. In the same way, this means that the price is more likely to "bounce off" at this level, and if it finally breaks this level, it will climb easily until it hits the next resistance

The current resistance levels are:

  • R1: $239.34 (2.65% above)
  • R2: $250.42 (7.41% above)
  • R3: $260.49 (11.73% above)
  • The current supports are:

  • S1: $224.87 (-3.55% below)
  • S2: $223.48 (-4.15% below)
  • S3: $211.65 (-9.22% below)
  • Bollinger bands

    This is an indicator that was designed in the 1980s by John Bollinger. It comprises three bands that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Price readings above or below the Bollinger Bands indicate that the price has followed a strong trend that has led to extreme highs or lows. At this point, the price is beneath the upper band, which should mean a short-term bounce (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 weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 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 1 day (weak signal). The RSI reading today was 35.7. Since then, Linde shares tanked a 10.41%

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    Earnings and financials

    Linde hosted the quarterly earnings call and presented the 2nd-quarter report in late July. The consensus earnings estimate is a a per-share earnings of %s of $1.65, that is a -10.33% less than previous reported quarter. Linde presented Q2 earnings of $1.90 per share versus analysts estimate that was $1.65.

    This compares to earnings of $1.83 per share same quarter last year, so current EPS is an improvement of 3.83%. Looking at turnover, figures went down a -11.48% compared to $7.2B same quarter 12 months ago.

    Linde is posting quarterly financial report. If you own or you are considering buying Linde stock, you must be careful as the financial reporting day usually has a very high volatility, and price can jump up or down with unsually low liquidity and not respecting your buy or stop-loss orders. You can obtain more information about the earnings call and the financial reports on the Investor Relations section of its website: http://www.linde.com.

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