Chemical and plastics manufacturer Dow Inc. (DOW) is expected to release their latest quarterly earnings figures Thursday. Let's check out the condition of the charts and indicators.
In this daily bar chart of DOW, below, I can see how prices made lows in September/October before rallying into January. Prices are trading above the rising 50-day moving average line and above the declining 200-day line. The trading volume looks to be more active since September suggesting increased investor interest.
The On-Balance-Volume (OBV) line has crept higher from October telling us that buyers of DOW have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has narrowed towards a possible take profits crossover.
In this weekly Japanese candlestick chart of DOW, below, I see a mixed picture. Prices are trading above the 40-week moving average line but the slope of the line is still negative.
The weekly OBV line has been neutral to softening the past three months.
The MACD oscillator has improved greatly but has not (yet) crossed above the zero line. The most recent candle has a small real body and could be a spinning top and may turn out to be part of a top reversal. We'll see.
In this daily Point and Figure chart of DOW, below, I can see an upside price target in the $70 area.
In this second Point and Figure chart of DOW, below, I used weekly price data. Again the $70 price target is shown.
Bottom line strategy: The rally in DOW has been stalled the past two weeks. Traders seem to be reducing their long exposure ahead of earnings tomorrow. I have no special knowledge of what DOW will report to shareholders but a modest pullback would not be a surprise right now.
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