To The Moon

$Olin(OLN)$

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.