Upcoming Earnings

Dow Inc. (ticker: DOW) is scheduled to report earnings before the market opens on 25 July. The consensus Earnings Per Share (EPS) estimate for the fiscal quarter ending June 2024 is $0.72. The reported EPS for the same quarter a year prior was $0.75.

Ichimoku Cloud and Resistance Combination

Following a fresh low formed on 10 July at $50.98, the stock breached the January low of $52.04 and reaffirmed an early downtrend. However, note that the stock has been largely rangebound since early 2023. You will also see that a subsequent pullback emerged and retested resistance between $56.50 and $55.82.

What is immediately apparent ahead of Dow’s earnings release is that the Ichimoku Cloud between the Leading Span A (light green at $53.73) and the Leading Span B (light orange at $55.58) complements the mentioned resistance area now. Therefore, a higher move could have the stock retest this confluence area and see price navigate lower levels.

Price Direction?

The early signs of a downtrend and the combination of the Ichimoku Cloud and resistance could prove enough for sellers to consider a bearish scenario, targeting a break of recent lows ($50.98).

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