Good technical signals and a possible breakout for OLIN CORP.

OLIN CORP (NYSE:OLN) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:OLN.

Technical Analysis Observations

ChartMill assigns a Technical Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple technical indicators and properties.

Overall OLN gets a technical rating of 7 out of 10. Although OLN is only a medium performer in the overall market, the technical picture looks good in both the medium and short term time frames.

• Both the short term and long term trends are positive. This is a very positive sign.
• In the last month OLN has a been trading in the 49.60 - 53.93 range, which is quite wide. It is currently trading near the high of this range.
• When compared to the yearly performance of all other stocks, OLN outperforms 40% of them, which is more or less in line with the market.
• OLN is part of the Chemicals industry. There are 85 other stocks in this industry, OLN did better than 60% of them.
• OLN is currently trading in the middle of its 52 week range. The S&P500 Index however is currently trading near new highs, so OLN is lagging the market.

Our latest full technical report of OLN contains the most current technical analsysis.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:OLN has a 10 as its setup rating, indicating its current consolidation status.

OLN has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 54.35. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 52.42, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for OLN in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:OLN

One strategy to consider is waiting for the actual breakout to occur, where the stock breaks out above the current consolidation zone. Traders can then enter a buy position, anticipating further upward momentum. As a risk management measure, it is advisable to set a stop loss order below the consolidation zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.