ECL is back in the "saddle"! ECL had been in a long-term uptrend. It took a breather in the second half of '23. But resumed with aggression (to end the year up 35%)! The recent gap up pushed the price perfectly back into the uptrend channel and the bulls have taken recent control pushing above the gap-anchored VWAP. The daily TTM squeeze that just fired caused the MONTHLY squeeze to fire long as well. So, I think this one might be off to the races! Go Long!!
ECL trade ideas
This sector looks incredibly weak!XLB materials sector saw a nasty down day today despite the S&p500 closing positive.
Clear relative weakness is being observed.
One of the leading stocks in XLB : DD (Dupont) collapsed by 14% after issuing weak forward guidance ahead of their earnings.
If they're expecting softer demand from China you can almost count on contagion through the sector.
ECOLAB Long Play - Multifaceted asset- Equipped for gainEcolab looking like a super stock right now, not only do they dominate the commercial cleaning equipment/chemicals game, they are also uniquely poised to excel during times of drought due to their production of water filters / desalination tech.
Overall I can see ECOlab eclipsing $185 by the years end. Manage risk accordingly
$ECL - Materials 3/10ECL is a top pick but these last few weeks have been UGLY. However, inflation pressures are expected to subside somewhat over next couple months and this could be a benefactor while everyone else is scared to buy it. Stop between 180 and 188 would reduce risk significantly. 3 gaps above which will be magnets to get filled. I would probably wait until earnings come out with companies dropping 20-40% off ERs. It reports in 13 days. Also many not be a bad options straddle a few months out. Lots of fun to be seen out of this one.