Dow Chemical stock
Dow Chemical (DOW) stock continued its upward trend in December 2016, rising 2.7% after a 3.6% rise in November. In December, Dow outperformed DuPont (DD), Eastman Chemical (EMN), and LyondellBasell Industries (LYB), which returned -0.30%, 0.10%, and -5.0%, respectively. It also outperformed the broader market representative, the SPDR S&P 500 ETF (SPY), which returned 1.4%.
Dow Chemical’s positive performance can be attributed to the announcement of its new R&D (research and development) center in Midland, Michigan. The facility will focus on R&D related to personal care products, energy-saving building technologies, and hybrid automobile solutions.
Moving average and relative strength index
Dow Chemical’s December gains widened its 100-day moving average price gap. Dow traded 5.3% above its 100-day moving average of $54.32, indicating an upward trend in the stock. Its 52-week low is $40.26, and its 52-week high is $57.93.
DOW’s 14-day relative strength index (or RSI) of 55 indicates that the stock is neither overbought nor oversold. An RSI score of 70 means that a stock has moved temporarily into an overbought situation, whereas an RSI score below 30 indicates that a stock has moved temporarily into an oversold position.
For 2016, DOW has returned 11.1%, while peers Eastman Chemical, LyondellBasell, and DuPont returned 11.4%, -1.3%, and 10.2%, respectively.
In the next part of this series, we’ll take a close look at the impact of the Fed’s interest rate hike on DOW’s pension obligations. In the rest of the series, we’ll look at analysts’ latest recommendations and DOW’s most recent valuations.