# Dow Inc (DOW)

Dow Inc. is an American commodity chemical company. The company is headquartered in Midland, Michigan.

## Stock Price Trends

Stock price trends estimated using linear regression.

#### Key facts

- The primary trend is decreasing.
- The decline rate of the primary trend is 2.36% per annum.
- DOW price at the close of October 11, 2024 was $53.78 and was inside the primary price channel.
- The secondary trend is increasing.
- The growth rate of the secondary trend is 9.15% per annum.
- DOW price at the close of October 11, 2024 was inside the secondary price channel.
- The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

### Linear Regression Model

Model equation:

Y_{i} = α + β × X_{i} + ε_{i}

Top border of price channel:

Exp(Y_{i}) = Exp(a + b × X_{i} + 2 × s)

Bottom border of price channel:

Exp(Y_{i}) = Exp(a + b × X_{i} – 2 × s)

where:

i - observation number

Y_{i} - natural logarithm of DOW price

X_{i} - time index, 1 day interval

σ - standard deviation of ε_{i}

a - estimator of α

b - estimator of β

s - estimator of σ

Exp() - calculates the exponent of e

### Primary Trend

Start date: January 6, 2021

End date: February 14, 2024

a = 3.9868

b = -0.0001

s = 0.0818

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × -0.0001) – 1

= -2.36%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.0818) – 1

= 38.69%

#### January 6, 2021 calculations

Top border of price channel:

Exp(Y_{310})

= Exp(a + b × X_{310} + 2 × s)

= Exp(a + b × 450 + 2 × s)

= Exp(3.9868 + -0.0001 × 450 + 2 × 0.0818)

= Exp(4.1209)

= $61.62

Bottom border of price channel:

Exp(Y_{310})

= Exp(a + b × X_{310} – 2 × s)

= Exp(a + b × 450 – 2 × s)

= Exp(3.9868 + -0.0001 × 450 – 2 × 0.0818)

= Exp(3.7938)

= $44.43

#### February 14, 2024 calculations

Top border of price channel:

Exp(Y_{1,091})

= Exp(a + b × X_{1,091} + 2 × s)

= Exp(a + b × 1,584 + 2 × s)

= Exp(3.9868 + -0.0001 × 1,584 + 2 × 0.0818)

= Exp(4.0467)

= $57.21

Bottom border of price channel:

Exp(Y_{1,091})

= Exp(a + b × X_{1,091} – 2 × s)

= Exp(a + b × 1,584 – 2 × s)

= Exp(3.9868 + -0.0001 × 1,584 – 2 × 0.0818)

= Exp(3.7196)

= $41.25

#### Description

- The primary trend is decreasing.
- The decline rate of the primary trend is 2.36% per annum.
- DOW price at the close of October 11, 2024 was $53.78 and was inside the primary price channel.

### Secondary Trend

Start date: June 22, 2022

End date: October 11, 2024

a = 3.5757

b = 0.0002

s = 0.0593

Annual growth rate:

Exp(365 × b) – 1

= Exp(365 × 0.0002) – 1

= 9.15%

Price channel spread:

Exp(4 × s) – 1

= Exp(4 × 0.0593) – 1

= 26.77%

#### June 22, 2022 calculations

Top border of price channel:

Exp(Y_{677})

= Exp(a + b × X_{677} + 2 × s)

= Exp(a + b × 982 + 2 × s)

= Exp(3.5757 + 0.0002 × 982 + 2 × 0.0593)

= Exp(3.9299)

= $50.90

Bottom border of price channel:

Exp(Y_{677})

= Exp(a + b × X_{677} – 2 × s)

= Exp(a + b × 982 – 2 × s)

= Exp(3.5757 + 0.0002 × 982 – 2 × 0.0593)

= Exp(3.6927)

= $40.15

#### October 11, 2024 calculations

Top border of price channel:

Exp(Y_{1,257})

= Exp(a + b × X_{1,257} + 2 × s)

= Exp(a + b × 1,824 + 2 × s)

= Exp(3.5757 + 0.0002 × 1,824 + 2 × 0.0593)

= Exp(4.1319)

= $62.30

Bottom border of price channel:

Exp(Y_{1,257})

= Exp(a + b × X_{1,257} – 2 × s)

= Exp(a + b × 1,824 – 2 × s)

= Exp(3.5757 + 0.0002 × 1,824 – 2 × 0.0593)

= Exp(3.8947)

= $49.14

#### Description

- The secondary trend is increasing.
- The growth rate of the secondary trend is 9.15% per annum.
- DOW price at the close of October 11, 2024 was inside the secondary price channel.