Technical Analysis on Huntsman and Dow Chemical: Dry Gas Prices Driving the Chemical Industry

Tue Feb 12, 2013 8:01am EST

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LONDON,  February 12, 2013  /PRNewswire/ --

The U.S. economy saw a sluggish advancement in the latter half of 2012. The
estimated growth in GDP in the fourth quarter is 2%, down from 3% seen inthe 3rd
quarter of 2012. Nonetheless,the U.S. economy has many other areas of potential
incremental growth. The developing markets requirement for materials, energy and
technology will go up exponentially going forward. Technological developments in
the oil & gas industry may assist American companies that use energy as fuel to
attain competitive advantage against companies in countries with high
operational costs.  StockCall has posted free technical research on Huntsman
Corporation and The Dow Chemical Company which can be downloaded upon sign up at

China  is expected to overtake  the United States  as a world's largest economy
by 2030. Nevertheless, it is worth noting that the revolution in energy
production in the U.S. could still remain a force in the world economy for the
next few years. Natural gas prices have bounced back to some extent from the
lows of below  $2  per million BTUs. Currently dry gas prices are trading at 
$3.60  per million BTU levels. This price range provides a massive competitive
advantage for chemical companies, fertilizer manufacturers and manufacturing in
general which use natural gas as a fuel. This has led to chemical companies
moving production back to the U.S from overseas which in turn has seen plants on
the Gulf Coast increase and build more capacity. It is understood that as long
as natural gas liquids are flowing out of wells, this will eventually lead to a
strategic competitive advantage.

Chemical companies, fertilizer manufacturers, small- to mid-cap E&P companies
are building higher reserves and increasing production levels each year.
Chemical companies such as Huntsman Corporation (NYSE:HUN)  have exhibited
robust profit margins due to cheaper natural gas prices relative to other larger
more established chemical companies. Sign up and read the complimentary report
on Huntsman Corporation  (NYSE:HUN)  at 

Performance Plastics & Materials contribute 56% to The Dow Chemical Company's
(NYSE: DOW) stock, Electronic and Functional Materials have significantly lower
contribution of 18% towards the company's stock and Agricultural Science
Products only contribute 15% the overall revenues. Its current stock price is
trading at  $33.09, with support levels at  $27.05. The company reported
collective revenue of  $54 billion, with a very robust forecast for the next few
years. The stock price has an 11% upside as the current stock price is trading
close to its 52-week high. The free report on The Dow Chemical Company can be
downloaded by signing up now at   

Huntsman Corporation current stock price is trading at  $18.92. The stock is
presently trading close to its 52-week high of  $19.07. The first resistance on
the downside will be  $16  level. At this time, the stock price is trading at
99% of its 52-week high. The stock is currently in a bullish mode as the
industry outlook is positive with opportunities arising from falling gas prices
leading to a reduced operational cost and higher gross margins. Hence, going
forward we keep a positive outlook on Huntsman Corporation.

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William T. Knight, Email:, Contact Number: +1-646-396-9857
(9:00 am EST - 01:30 pm EST)

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