During Wednesday night's Lightning Round segment of Mad Money one caller asked host Jim Cramer about Olin (OLN) . "If you want a chemical company, you want DuPont (DD) . This one has been a disappointment," replied Cramer. Let's take a look at the charts and indicators of DD after a quick look at OLN.
In this daily bar chart of OLN, below, we can see a relatively weak picture with prices staying below the declining 200-day moving average line the past 12 months and now trading around the declining 50-day moving average line.
In the daily bar chart of DD, below, we can see a more positive-looking picture. Here prices are above the rising 50-day moving average line. Prices are also above the bottoming 200-day moving average line.
The daily On-Balance-Volume (OBV) line has been positive since late March telling us that buyers of DD have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator looks like it is bottoming above the zero line in preparation for a new buy signal.
In this weekly bar chart of DD, below, we can see a positive picture with prices edging above the bottoming 40-week moving average line.
The weekly OBV line has come off its low and the MACD oscillator is now close to crossing above the zero line for an outright buy signal.
In this daily Point and Figure chart of DD, below, we can see a potential upside price target in the $63 area.
Bottom-line strategy: DD looks attractive from the long side. Traders should risk a close below $50 and add on strength. The $63 area is our first target followed by the $75 area.