Conclusion, Investment Implications, Strategy

Dow Inc. (DOW) has recently resumed its March advance in the midst of what appears to be an emerging major bullish trend change.  A sustained rise above the $43.84 area woud target an additional 16% rise to $51.50 per share.   This is an Asbury Momentum idea.

Analysis and Rationale

Dow Inc. (DOW) provides various materials science solutions for consumer care, infrastructure, and packaging markets in the United States, Canada, Europe, the Middle East, Africa, India, the Asia Pacific, and Latin America. It operates through Packaging & Specialty Plastics, Industrial Intermediates & Infrastructure, and Performance Materials and Coatings segments. It also engages in property and casualty insurance, as well as reinsurance business. Dow Inc. was incorporated in 2018 and is headquartered in Midland, Michigan.

Chart 1 below plots DOW daily since January, highlighting in green the Aug 10th apparent resumption of its March advance following 2 months of sideways investor indecision.  A sustained rise above the upper boundary of the indecision area, currently at $43.84, would confirm this and target an additional 16% rise to $51.50 per share.

Chart 1

Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $42.81 area, a long entry price of $44.32 would provide a 1:4.8 risk/reward ratio (risking $1.00 to make $4.80) with an initial risk of 3.4%.

Table 1


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