Trinseo (formerly Styron) is a global materials company based in Berwyn, Pennsylvania, USA. The stock being a component of the Russel2000 index can be traded under ticker $TSE at NYSE. Trinseo offers a broad line of plastics, latex, and synthetic rubber. The primary markets are automotive, appliances, electronics, packaging, tire industries, among others. Currently, we can see commodities like oil, rubber, cotton turning higher against weakining US dollar. Hereby, Trinseo being an important player in the manufacturing of synthetic materials should be a great opportunity for investors to diversify their portfolio by indirect investement in the rising commodity prices.
Trinseo weekly Elliott Wave analysis 05.29.2021
The Weekly chart below shows the Trinseo shares $TSE traded at NYSE. First, the stock price has developed an impulse higher in red wave I of a cycle degree. It has printed the all-time highs on the 29th of January 2018 at 85.35. From the highs, a correction lower in red wave II has unfolded as an Elliott wave zigzag pattern with a truncated ((C)) wave. Frequently, lack of space to the downside makes many stocks truncate in the last swing without reaching the usual extension of 100%. Trinseo has printed an important bottom on March 12th, 2020 at 14.16. As a matter of fact, the stock price has lost 83% of its value within 25 months.
From 2020 lows, a new cycle in wave III has already started and should extend towards 185.35 highs and beyond. Then, the target for wave III will be towards 99.26-151.82 area and even higher.
In shorter cycles, from March 2020 lows a cycle higher in black wave ((1)) has ended on 18th of March 2021 at 76.49. From the highs, a correction lower in black wave ((2)) is still in progress and should correct the March 2020 cycle before Trinseo will resume the rally. Investors and traders can be looking to buy pullbacks in 3, 7, or 11 swings against 14.16 lows. Currently, while prices stay below 70.25, the stock price can reach towards the 54.20-44.25 blue box buying area. There, a rally in black wave ((3)) to new highs or a bounce in 3 waves should take place.