Solstice Advanced Materials Inc. (NASDAQ:SOLS) stock edged higher in Tuesday’s premarket trading after plunging 15.14% in the previous session following the company’s announcement that it will acquire Element Solutions Inc. (NYSE:ESI) in a cash-and-stock deal valued at about $14.5 billion.
Solstice Advanced Materials Technical Analysis
The technical outlook remains mixed.
Solstice shares are trading about 17% below both their 20-day simple moving average of $82.74 and 50-day simple moving average of $82.85. That suggests the intermediate-term trend remains weak following the recent correction.
However, the stock is still about 19% above its 200-day simple moving average of $57.74, indicating the longer-term uptrend remains intact despite recent selling pressure.
Momentum indicators also point to caution. The moving average convergence divergence (MACD) remains below its signal line, while the histogram is negative. That suggests bearish momentum continues to outweigh buying interest.
The moving averages reinforce that view. The 20-day average has fallen below the 50-day average, creating a bearish crossover. At the same time, the 50-day average remains above the 200-day average, preserving the longer-term bullish trend.
The stock reached a 52-week high of $90.80 in May before losing momentum and retreating through June.
The next key resistance level sits near $76.50, just below the 100-day simple moving average of $79.82. A move above that area would strengthen the near-term outlook.
Support is seen around $66.50. A break below that level could lead to additional downside toward the 200-day moving average.
Analyst Outlook
The stock carries a Buy rating with an average price forecast of $95.20. Recent analyst actions include Mizuho raising its price forecast to $95 while maintaining a Neutral rating on July 1. RBC Capital raised its price forecast to $102 and reiterated an Outperform rating on June 30. Truist Securities initiated coverage with a Hold rating and a $90 price forecast on June 8.
Price Action
SOLS Stock Price Activity: Solstice Advanced shares were up 0.96% at $68.70 during premarket trading on Tuesday, according to Benzinga Pro data.
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