Bearish mood pushes Olin to session low of $49.74

A quick look at yesterday: the chemical products and ammunition manufacturer plunged into the red after losing 5.52%, declining to $49.84.

United States Pending Home Sales fell short of the 0.5% projections, with new data of 0%.

This down-slide takes place despite the positive US macroeconomics indicators data that was published earlier — data from United States concerning GDP was released yesterday at 12:30 UTC. Newly published figures emphasized continued decline from last month's figure of 2.6 to 1.3 this month. United States Initial Jobless Claims released yesterday at 12:30 UTC is better than expected at 229,000 but down from preceding data of 225,000 according to new data.

With regards to technical trend indicators, chart analysis show that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Bearish sentiment was sufficient to push prices below the known Fib level of $51.17 serving as intraday support. Asset volatility analysis shows that Bollinger Bands® shows an indication of recovery: the lower band is at $50.45, a low enough level to, generally, suggest that Olin is trading below its fair value. Technical analysis shows that Olin could begin to recover as it approaches significant support, now $1.13 away from $48.71. Dipping below could be an indication that further losses are ahead.

Overall, the technical outlook suggests Olin is likely to remain muted for the immediate future, with no clear-cut direction.

Olin was not the only decliner in the materials sector; BHP Billiton goes down 0.69% yesterday to close at $55.41.

On the other hand, positive performances could be seen by looking at other materials stocks as Linde added 0.49% to its value, and traded at $356.59.

Looking ahead, ongoing depreciation may be prolonged as today at 12:30 UTC data for United States Core Durable Goods Orders will be released, with an expected decline to 0% from the preceding figure of 0.3%.

Furthermore, United States Core PCE Price Index (MoM) (Apr) will be released today at 12:30 UTC.

Pointing downwards for around a month. The chemical products and ammunition manufacturer has shed 15.71% over the past three months.