Wed 26'th Apr 2017
Chemtura Corp Stock Analysis
Technical stock analysis for Wed 26'th Apr 2017
Sell candidate since 2017-04-26
Given the current horizontal trend you can expect Chemtura Corp with 90% probability to be traded between USD 33.83 and USD 34.06 at the end of this period with 90% probability. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the roof. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
Chemtura Corp holds a sales signal from the short-term moving average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock. On further gains, the stock will meet resistance from the short-term moving average at approximately USD 33.51. On a fall, the stock will find some support from the long-term average at approximately USD 33.34. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sales signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sales signal was issued from a pivot top point on Thursday February 16, 2017, which indicates further falls until a new bottom pivot has been found. Volume fell on the last day without any changes to the price. This doesn't cause any direct divergence but may be an early warning and a possible "turning point". The very low volume increases the risk and reduces the other technical signals issued.
* Golden Star Signal* is when the short-term moving average, the long-term moving average, and priceline meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.
Relative Strength Index (RSI)
RSI14 is 67 and the stock is currently not being overbought or oversold
Support & Resistance
Chemtura Corp finds support from accumulated volume at USD 33.20, USD 33.10, and USD 33.05. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 33.55.
The stock is about to test the resistance at USD 33.55. If this level is broken the stock may move faster and we often see a peak at the end of such a break, posing a good sales opportunity as in 90% of the cases you will get a reaction back to the level broken before new gains. A break should be followed by increasing volume else the break may be false and despite a break of the actual resistance level the stock falls back fairly soon.
In general the stock tends to have controlled movements, but the low liquidity has increased the risk substantially.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
Chemtura Corp holds several negative signals and we believe that it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Sell Candidate.