$OLN rallies 10.95% strong breakout confirms bullish shift

Trend_Radar
02-05 20:30

$Olin(OLN)$

Olin Corp.(OLN) Soared +10.95%: Chemical Stock Breaks Resistance, Momentum Shifts Bullish

Latest Close Data:

Olin closed at $25.44 on Feb 4, surging +10.95%. This strong move brings it within 11.6% of its 52-week high of $28.77.

Core Market Drivers:

  1. A significant short squeeze appears to be a primary driver, with elevated short volume (~16%) in recent sessions being unwound.

  2. Positive sentiment in the cyclical materials sector and Olin's attractive 3.14% dividend yield likely contributed to the buying pressure.

Technical Analysis:

  • The breakout is confirmed by surging volume (5.05% turnover, VR=1.06).

  • The MACD histogram has turned positive (-0.0157), signaling a potential bullish crossover is imminent.

  • The 6-day RSI at 71.56 indicates strong momentum, though it's approaching overbought territory.

Key Price Levels:

  • Immediate Pivot: $25.44 (Today's Close)

  • Strong Resistance: $26.00 - $28.77 (52-Wk High)

  • Primary Support: $22.95 (Previous Resistance, now support)

Valuation Perspective:

The stock trades at a P/S of 0.43, which is historically low for the company. However, its Forward P/E of -32.17 and TTM P/E of -68.12 reflect recent earnings challenges. The low P/B of 1.53 suggests the asset base is not fully valued by the market.

Analyst Targets:

15 analysts have an average price target of $22.47 (below current price), with a consensus rating leaning towards "Hold" (12 Hold, 2 Buy, 2 Strong Buy, 1 Underperform).

Weekly Outlook:

Expect consolidation near the $25-$26 zone after the sharp rally. A sustained close above $26 could target the $27-$28 range. A failure to hold $24.50 would signal weakness and a potential retest of $23 support.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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