Stock Outlook: OLN

OLN chart showing Price, Volume, Stochastics, MACD and RSI.

OLN continues to look good. I'm still looking for the upper trend line touch at around $21.70. As of now Stochastics look over bought, but I feel we can still get another dollar rise on this stock. MACD and RSI continue to look very bullish.

Pay attention to this stock if it crosses the upper trend line. It looks like it could have potential for a higher upside, where the $21.70 area will become the new support.

Stock Pick Idea: GT

GT chart showing MACD, Stochastics and RSI.

GT (Goodyear Tire) opened today at $9.91 and closed up at $10.42. That's a really nice pop in one day for this cheap stock.

I was looking at the GT chart and saw that there could be a possible trend reversal to the upside. Goodyear Tire's previous low on the lower trend line was $9.10 on August 25th 2010. GT has a new higher low on the lower trend line marked at $9.51 on November 30th 2010; this usually means a reversal of a down trend to an up trend.

This stock can really be on the move to the $13.50 area in the near future. I'm not looking for that much of a gain for now. With MACD and Stochastics looking positive I can see at least another dollar gain from todays close of $10.42.

Stock Pick Idea: OLN

I recently got into OLN (Olin Corporation) because I noticed a lower trend line was going to be touched and both stochastics and MACD were oversold. I found the stock on November 16th and saw that it was going to setup soon. I waited until the touch of the lower trend line and cross of stochastic. Following these steps can give you a great entry and least possible losses.    

OLN chart showing trend lines, stochastics, MACD, RSI and volume. As of 12/3/10.

OLN began to rally with the market on December 1st opening $0.47 higher from the previous close. December 2nd also had a small follow through day closing only $0.02 above the previous day. As of December 3rd we closed down $0.06 with a Doji Star candle stick. I'm looking for the stock to possibly pull back a few more cents to hit the 20 day moving average where it'll reverse and continue on up to the upper trend line at $21.50.

The S&P report has a 4 out of 5 star buy rating, with a 12-month price target of $24.00. The Reuters report has an Underperform rating for the stock.

Professional reports may have mixed opinions on OLN but I will stick to what I see in the stocks history. Each time it came down to an oversold level while also hitting a lower trend line, it popped up at least 3 points giving you a nice return in only 2 months. I will hold the stock until the $21 level if I continue to see strength in the stock. If the stock starts showing mixed signals once the stock goes up a point, I might just sell it.