The US company DuPont is among the biggest chemicals groups in the world and is one of the Dow Jones 30 companies. It was founded in 1802 and distributes products in the sectors of agriculture, nutrition, electronics, building and also clothing. As part of this, DuPont sells many plastics. The stock is in an established upward trend and had most recently lost value. A buying opportunity? In this technical analysis, we will expand on that.
Clear upward trend in the day
In the daily chart, the upward trend is clearly visible. Until now, it was predominantly running above the SMA 200 and SMA 50, which is a very bullish characteristic. In the last few weeks, the prices have yielded somewhat and are now at the SMA 50, where the prices are pausing their correction a little. The trend break in the day would also take place at an important psychological price marker of 80 US dollars. Since the Dow Jones is also running in an upward trend, we can look for an entry in this value.
Trend formation in the hour?
Currently, no entry signals are to be seen in the hourly chart. We are waiting, therefore, for the formation of a trend, as has been drawn in. Entry opportunities are available in a classic situation at the P2 of the hourly chart, or subsequently from out of the correction. Entries are marked with blue circles.
If the prices significantly undercut the important 80-dollar mark, entry scenarios in the hourly chart are irrelevant. Initial partial sales for profit-taking should be made at the high of the superior trend, at 86 USD at the latest.
Before making an entry, one should take news into account. In addition, one should observe the overall market as well as the actions of the central banks.
Possible trading parameter
Entry: depending on the formation of the hourly trend, between 82 – 84 USD
Stop: depending on the formation of the hourly trend, under the last low
Target: target zones at 86 USD and 90 USD
Neither the author nor our company is invested in the securities and underlyings discussed at the time of publishing this analysis.
Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.