Dow Chemical (DOW) PriceWatch Alert Shows Bearish Technicals

Posted: Wednesday, June 24, 2009 8:07 AM EDT

Dow Chemical (NYSE: DOW) closed yesterday at $15.26. So far the stock has hit a 52-week low of $5.89 and 52-week high of $39.99. Dow Chemical stock has been showing support around 14.52 and resistance in the 15.76 range. Technical indicators for the stock are Bearish and S&P gives DOW a neutral 3 STAR (out of 5) hold rating. DOW appears on the Investors Observer Analysts Favorites list. For a hedged play on this stock, look at a Dec '09 13 covered call (DOW LM) for a net debit in the $11.76 area. That is also the break even stock price for this trade. This covered call has a 178 day duration, provides 22.94% downside protection and a 10.54% assigned return rate for a 21.62% annualized return rate (comparison purposes only). Dow Chemical has a current annual dividend yield of 3.68%. [For more information on these strategies along with more details on possible risks go to www.iotogo.com/HPWAinfo]

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