Eastman Chemical’s stock performance
So far in 2017, Eastman Chemical (EMN) has given decent returns to its shareholders. At the end of September 12, 2017, Eastman Chemical has returned 14.6% and has managed to outperform the broad-based SPDR S&P 500 ETF (SPY), which has returned 11.9% so far. EMN’s peers Westlake Chemicals (WLK) and Huntsman (HUN) have better returns than EMN with 41.8% and 45.4%, respectively, while LyondellBasell (LYB) has underperformed EMN with a return of 10.3%.
EMN’s stock price is primarily driven by the strong earnings reported in the first two quarters and the expectation of continuing the trend for the remaining quarters in fiscal 2017. Also, the positive business developments like capacity expansion plans in its Kuantan and Kingsport manufacturing facilities, new business wins, and new product launches helped the stock move up.
What do moving averages and relative strength index say?
As of September 12, 2017, Eastman Chemical was trading 4.4% above the 100-day moving average price of $82.85, indicating a prevailing upward trend in the stock. EMN in 2017 so far has mostly been trading above the 100-day moving average price. EMN’s 14-day relative strength index of 53 indicates that the stock is neither overbought nor oversold. An RSI of 30 or below indicates that the stock has moved into an oversold position temporarily, while an RSI of 70 and above shows that the stock has moved into an overbought situation briefly.