Yesterday's slide leaves Olin traders hoping for a bounce

Yesterday at a glance: a tough session dominated by bearish sentiment left Olin $3.46 lower, while setting a $48.46 to $50.09 session range.

Amid the market gloom, United States Building Permits (May) came out at 1.49 million, while a consensus of analysts was expecting 1.43 million. Data for United States Housing Starts published yesterday at 12:30 UTC came out at 21.7%, beating projections of -0.8% and showing improvement over the preceding figure of -2.9%. United States Housing Starts (May) released yesterday at 12:30 UTC with a figure of 1.63 million, while the previous figure was 1.34 million.

Analysis of Olin's recent price action suggests Olin Corporation could begin to recover as it approaches significant support, now 70 cents away from $48.2. Dipping below could be an indication that further losses are ahead. Technical analysis trend indicators suggest that the MACD index is indicating that momentum is shifting from bullish to bearish following a negative crossover. When the MACD falls below the signal line, it is typically considered to be a bearish development favoring short positions. Asset volatility analysis shows that Bollinger Bands® shows an indication of recovery: the lower band is at $47.52, a low enough level to, generally, suggest that Olin is trading below its fair value.

All in all, the technical analysis suggests Olin has no clear-cut direction.

Olin was not the only decliner in the materials sector; Linde lost 1.76% yesterday and closed at $368.68. Rio Tinto withdraws 2.4% yesterday to close at $67.55. BHP Billiton went down 1.28%, closed at $63.17.

With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as as things stand, upcoming United States Crude Oil Inventories data is projected to fall short of market expectations with newly published data of 1.87 million, following on from the preceding figure of 7.92 million. New data is set to be published tomorrow at 15:00 UTC.

Some optimism can drawn from the fact that United States Initial Jobless Claims is projected to outperform its last figure with 260,000. It previously stood at 262,000; data will be released tomorrow at 12:30 UTC.

Furthermore, United States Existing Home Sales (May) is expected tomorrow at 14:00 UTC.

Having soared to a high of $64.59 approximately 4 months ago, the chemical products and ammunition manufacturer is now trading 18.93% lower.