Dow Chemical Co. (DOW) Shares Tick Up after Upgrade at Citigroup Inc.

Dow Chemical Co. (NYSE: DOW) shares rose in value in early trading today on slower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Analysts at Citigroup Inc. upgraded shares of Dow Chemical Co. (NYSE: DOW) from Neutral to Buy today. With a rating of Buy on the shares, the company has a 52-week high of $57.10. A number of other analysts have spoken on the company recently, and Dow Chemical Co. has secured a consensus one-year price target of $60.25, higher than the opening price of $52.34, a difference of 11.49 percent. Usually, after analysts give an upgrade report on a stock, they will subsequently issue other updates, usually followed by a price target change.

Meanwhile, US stock opened lower amid concerns surrounding the U.S. Department of Justice’s probe into Deutsche Bank AG.

The S&P 500 SPX, -0.25% slipped 5 points, or 0.2%, to 2,162.

The Dow industrials DJIA, -0.26% fell 55 points, or 0.3%, to 18,252.

The Nasdaq Composite COMP, -0.11% was off 13 points, or 0.3%, to 5,298

Dow Chemical Co. (NYSE: DOW) shares last traded at $52.44, an increase of $0.61 or 0.01 from the previous closing price. Opening at $52.34, they fluctuated from $52.14 and $52.60 throughout the day.

Dow Chemical Co. (NYSE: DOW) now has a market cap of 59.09B.

Dow Chemical Co.Trading Volume

The stock’s average daily volume is 5,658,530 shares out of a total float 1,051,163,000 and some 1,444,759 shares traded hands yesterday, below the norm. Trading volume is likely to increase in the next few days as swing traders often use increases in trading volume to determine substantial volume growth or distribution by institutional investors.

While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive indicator to market traders that institutions may be moving in, so institutional sponsorship is crucial.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain substantial teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Dow Chemical Co. Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.

Trades for Dow Chemical Co. (NYSE: DOW) have ranged from $40.26 – 57.10, and the stock now has a 50-day MA of $53.06 and 200-day MA of $52.20. Today’s last price is 0.08% under the 52 week high of $57.10.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors identify companies that have been successful at growing their earnings by at least 25% over the past 3 years.

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