ESI | Long Setup | Specialty Chemicals | (May 2025)ESI | Long Setup | Specialty Chemicals + Steady Growth Outlook | (May 2025)
1️⃣ Short Insight Summary:
Element Solutions Inc. (ESI) operates in specialty chemicals for electronics and industrial applications. It's showing a steady long-term growth trend, with bullish structure forming off recent VWAP reactions and a potential W-formation.
2️⃣ Trade Parameters:
Bias: Long
Entry: After a slight pullback from current levels — watching for confirmation
Stop Loss: $18.72
TP1: $23.96
TP2: $26.78
TP3: $29.44
Partial Exits: Recommended around TP1 to manage risk and lock in gains
3️⃣ Key Notes:
✅ ESI operates through two segments: Electronics and Industrial/Specialty — both research-heavy, supporting long-term innovation
✅ Financials show $2.4B in revenue, ~$244M net income, $1.24B EBITDA
✅ Free cash flow is strong at ~$600M, despite having ~$1.9B in debt — manageable under current conditions
✅ Dividend yield stands at 1.53%, and payouts have grown over time — good signal for income investors
✅ PE ratio at 17.57 is fair for a company in this segment with steady fundamentals
✅ On the 30-min chart, bearish divergence noted, so caution on entry timing — but daily chart still shows money inflow and upside pressure
✅ VWAP reactions have consistently led to reversals — last W-formation led to higher highs, so this zone matters
4️⃣ Optional Follow-up Note:
Watching closely for one more small dip before entering. If confirmed, I’ll look to ride this trend toward TP1 and beyond. Will update the chart and levels if structure shifts.
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Disclaimer: This is not a financial advise. Always conduct your own research. This content may include enhancements made using AI.
