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Ecolab Stock Forecast: Can (NYSE: ECL) Stock Rise Or Fall?

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ECL stock has been on a bullish trend since November last year before 2023 began. The ECL price bounced back from a major support of around $131 where there was high liquidity and strong buying. Ecolab stock price also followed the Fibonacci levels of 78.60%, 50.00%, 38.20%, and 23.60% closely and rose and fell from these Fibo levels throughout the uptrend. 

The Ecolab stock price climbed up to $190 and was reached in July 2023 and then the price fell after the previous earnings report as it invited profit booking and fell to form support near $177 which is also a previous swing low level around 23.60% fib level on the charts. 

According to the price action, it seems that the ECL stock is ready for a significant increase with potential growth in price for the upcoming sessions if the stock rebounds and profit booking stops. The buyers are supporting the Ecolab stock’s upward movement by working hard to keep these levels.

Based on recent data, the revenue of Q2, 2023 was $3.85 Billion with a net income of 329.70 Million. Moreover, the ECL stock estimated EPS for Q2’ 23 was 1.211, and the reported EPS was 1.24 which gave a positive surprise of 2.38%. Moreover, the forecasted EPS for the next quarter is positive at 1.519.

Moreover, ECL stock is going to pay a dividend of $0.53 per share on October 16th. The ex-dividend date is September 18th which means only the shareholders who own the stock before that date will receive the dividend. The chart shows that ECL stock usually rises before the dividend date and falls after the earnings report. 

This indicates that investors buy the stock to get the dividend and sell it to make profits. Therefore, it is possible that on upcoming dividends, ECL stock might rebound and continue to rise until the next quarter earnings date and may reach a new yearly high.

Technical Analysis of ECL Stock Price in 1-D Timeframe

At the time of publishing, Ecolab Inc. (NYSE: ECL) is trading below the major 20, and 50-day EMA (exponential moving averages), which rejects the ECL price trend. 

The MACD line at 0.8592 and signal line at 0.4969 are below the zero line and both lines have crossed each other and the histogram width is lean.

The current value of RSI is 37.43 points. The 14 SMA is below the median line at 37.43 points.

ECL stock price was at $177.96 with an intraday increase of 0.16%. ECL stock’s average volume is 1.035 Million and the current volume is 3.205 Million where the current volume is above average volume. The stock has a market cap of $50.725 Billion and floating shares stand at 253.371 Million. 

Ecolab Stock Forecast: Can (NYSE: ECL) Stock Rise Or Fall?
Source: ECL.1D.NYSE by TradingView

The current stock price of ECL stock might achieve more if it successfully rebounds after the dividend date. There is a possibility for the price to move upwards and make new highs, and the next resistance level could be between $185 and $190.

On the other hand, if the ECL stock price breaks below the previous swing low or below the 23.60% fib level, then the probable support would become $171 and $164.

Summary

Ecolab Inc. (NYSE: ECL) stock price is showing a bullish trend on the 1-D time frame as the dividend date is approaching. However, the technical indicators are still negative due to heavy profit bookings in the past and suggest that the price may drop below the previous low if the selling pressure continues.

Technical Levels

  • Support levels: $171 and $164
  • Resistance levels: $185 and $190
Disclaimer

In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

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