Stock Price Trends

Eastman Chemical Company (EMN)

Eastman Chemical Company is an American company primarily involved in the chemical industry. Once a subsidiary of Kodak, today it is an independent global specialty materials company that produces a broad range of advanced materials, chemicals and fibers for everyday purposes. The company is headquartered in Kingsport, Tennessee.

Stock Price Trends

Stock price trends estimated using linear regression.

Key facts

  • The primary trend is increasing.
  • The growth rate of the primary trend is 18.17% per annum.
  • EMN price at the close of March 31, 2025 was $88.11 and was lower than the bottom border of the primary price channel by $3.82 (4.16%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 44.08% per annum.
  • EMN price at the close of March 31, 2025 was higher than the top border of the secondary price channel by $2.38 (2.77%). This indicates a possible reversal in the secondary trend direction.
  • The direction of the secondary trend is opposite to the direction of the primary trend. This indicates a possible reversal in the direction of the primary trend.

Linear Regression Model

Model equation:
Yi = α + β × Xi + εi

Top border of price channel:
Exp(Yi) = Exp(a + b × Xi + 2 × s)

Bottom border of price channel:
Exp(Yi) = Exp(a + b × Xi – 2 × s)

where:

i - observation number
Yi - natural logarithm of EMN price
Xi - time index, 1 day interval
σ - standard deviation of εi
a - estimator of α
b - estimator of β
s - estimator of σ
Exp() - calculates the exponent of e


Primary Trend

Start date: September 14, 2022
End date: December 17, 2024

a = 3.8273

b = 0.0005

s = 0.0706

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0005) – 1
= 18.17%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0706) – 1
= 32.62%

September 14, 2022 calculations

Top border of price channel:

Exp(Y618)
= Exp(a + b × X618 + 2 × s)
= Exp(a + b × 896 + 2 × s)
= Exp(3.8273 + 0.0005 × 896 + 2 × 0.0706)
= Exp(4.3783)
= $79.70

Bottom border of price channel:

Exp(Y618)
= Exp(a + b × X618 – 2 × s)
= Exp(a + b × 896 – 2 × s)
= Exp(3.8273 + 0.0005 × 896 – 2 × 0.0706)
= Exp(4.0960)
= $60.10

December 17, 2024 calculations

Top border of price channel:

Exp(Y1,186)
= Exp(a + b × X1,186 + 2 × s)
= Exp(a + b × 1,721 + 2 × s)
= Exp(3.8273 + 0.0005 × 1,721 + 2 × 0.0706)
= Exp(4.7557)
= $116.25

Bottom border of price channel:

Exp(Y1,186)
= Exp(a + b × X1,186 – 2 × s)
= Exp(a + b × 1,721 – 2 × s)
= Exp(3.8273 + 0.0005 × 1,721 – 2 × 0.0706)
= Exp(4.4734)
= $87.66

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 18.17% per annum.
  • EMN price at the close of March 31, 2025 was $88.11 and was lower than the bottom border of the primary price channel by $3.82 (4.16%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: September 16, 2024
End date: January 30, 2025

a = 7.2966

b = -0.0016

s = 0.0305

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × -0.0016) – 1
= -44.08%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0305) – 1
= 12.98%

September 16, 2024 calculations

Top border of price channel:

Exp(Y1,121)
= Exp(a + b × X1,121 + 2 × s)
= Exp(a + b × 1,629 + 2 × s)
= Exp(7.2966 + -0.0016 × 1,629 + 2 × 0.0305)
= Exp(4.7634)
= $117.14

Bottom border of price channel:

Exp(Y1,121)
= Exp(a + b × X1,121 – 2 × s)
= Exp(a + b × 1,629 – 2 × s)
= Exp(7.2966 + -0.0016 × 1,629 – 2 × 0.0305)
= Exp(4.6414)
= $103.68

January 30, 2025 calculations

Top border of price channel:

Exp(Y1,214)
= Exp(a + b × X1,214 + 2 × s)
= Exp(a + b × 1,765 + 2 × s)
= Exp(7.2966 + -0.0016 × 1,765 + 2 × 0.0305)
= Exp(4.5468)
= $94.33

Bottom border of price channel:

Exp(Y1,214)
= Exp(a + b × X1,214 – 2 × s)
= Exp(a + b × 1,765 – 2 × s)
= Exp(7.2966 + -0.0016 × 1,765 – 2 × 0.0305)
= Exp(4.4248)
= $83.49

Description

  • The secondary trend is decreasing.
  • The decline rate of the secondary trend is 44.08% per annum.
  • EMN price at the close of March 31, 2025 was higher than the top border of the secondary price channel by $2.38 (2.77%). This indicates a possible reversal in the secondary trend direction.