Daily Stock Report

Daily Stock Report - August 11, 2020 Dow Inc. - (DOW)

Chemical producer Dow Inc. (DOW) has returned to the Green Favored Zone in the SIA S&P 100 Index Report from a brief dip into the yellow zone after moving up 3 spots yesterday. 

Dow (DOW) shares are bumping up against the top of a $39.00 to $45.00 trading range. Higher lows indicate continuing underlying accumulation and a breakout would signal the start of a new upleg. Next potential upside resistance tests on a breakout appear near the $50.00 round number, and the previous peak near $54.00. Initial support appears near the $40.00 round number. 

Following a May breakout rally, DOW shares staged a correction in June that bottomed out at a higher low near $39.00. Since then the shares have been under renewed accumulation, snapping a downtrend line and building an upward trend of higher lows. 

Currently the shares are testing $45.00 where a breakout would complete a bullish double top pattern and confirm the start of a new upleg. Should that occur, next potential upside resistance may appear near $48.50 where a vertical count and previous high converge then $50.00-$50.50 between a round number and previous high, and then the previous peak near $55.75. Initial support appears near $40.60 based on a 3-box reversal.  

With a bullish SMAX score of 6, DOW is exhibiting near-term strength against the asset classes. 

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