Huntsman Corp (HUN) is a manufacturer and marketer of chemical products for consumers and industrial customers - assorted polyurethanes, performance products, and adhesives. On Friday the company cut their Q3 outlook and the demand for some of their products like polyurethane.
Let's check out the charts and indicators.
In this daily bar chart of HUN, below, we can see that prices turned lower from February. HUN is trading below the declining 50-day moving average line and below the declining 200-day line. The trading volume has been active since February and the On-Balance-Volume (OBV) line has been in a downward trend since February telling us that sellers of this company have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator turned bearish again in late August.
In this weekly Japanese candlestick chart of HUN, below, we can see that prices have broken below the declining 40-week moving average line. The candles have yet to hammer out a bottom pattern. Support in the $26-$24 area is old and may not be durable when tested in the days ahead.
The OBV line is stalled and beginning to weaken. The MACD oscillator is in a longer-term bearish alignment below the zero line.
In this daily Point and Figure chart of HUN, below, we can see a $24 price target.
In this weekly Point and Figure chart of HUN, below, we see that the software is projecting a $19 price target.
Bottom line strategy: The charts and indicators are clear - avoid the long side of HUN.
