Stock Price Trends

Linde plc Ordinary Shares (LIN)

Linde plc is a multinational chemical company. It is the largest industrial gas company by market share and revenue. It serves customers in the healthcare, petroleum refining, manufacturing, food, beverage carbonation, fiber-optics, steel making, aerospace, chemicals, electronics and water treatment industries. The company's primary business is the manufacturing and distribution of atmospheric gases, including oxygen, nitrogen, argon, rare gases, and process gases, including carbon dioxide, helium, hydrogen, electronic gases, specialty gases, and acetylene.

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 31.43% per annum.
  • LIN price at the close of November 20, 2024 was $450.14 and was lower than the bottom border of the primary price channel by $35.33 (7.28%). This indicates a possible reversal in the primary trend direction.
  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 23.20% per annum.
  • LIN price at the close of November 20, 2024 was lower than the bottom border of the secondary price channel by $3.63 (0.80%). This indicates a possible reversal in the secondary trend direction.

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 LIN 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: June 16, 2022
End date: May 1, 2024

a = 4.9015

b = 0.0007

s = 0.0417

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0007) – 1
= 31.43%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0417) – 1
= 18.17%

June 16, 2022 calculations

Top border of price channel:

Exp(Y646)
= Exp(a + b × X646 + 2 × s)
= Exp(a + b × 938 + 2 × s)
= Exp(4.9015 + 0.0007 × 938 + 2 × 0.0417)
= Exp(5.6872)
= $295.08

Bottom border of price channel:

Exp(Y646)
= Exp(a + b × X646 – 2 × s)
= Exp(a + b × 938 – 2 × s)
= Exp(4.9015 + 0.0007 × 938 – 2 × 0.0417)
= Exp(5.5203)
= $249.71

May 1, 2024 calculations

Top border of price channel:

Exp(Y1,116)
= Exp(a + b × X1,116 + 2 × s)
= Exp(a + b × 1,623 + 2 × s)
= Exp(4.9015 + 0.0007 × 1,623 + 2 × 0.0417)
= Exp(6.2001)
= $492.79

Bottom border of price channel:

Exp(Y1,116)
= Exp(a + b × X1,116 – 2 × s)
= Exp(a + b × 1,623 – 2 × s)
= Exp(4.9015 + 0.0007 × 1,623 – 2 × 0.0417)
= Exp(6.0331)
= $417.02

Description

  • The primary trend is increasing.
  • The growth rate of the primary trend is 31.43% per annum.
  • LIN price at the close of November 20, 2024 was $450.14 and was lower than the bottom border of the primary price channel by $35.33 (7.28%). This indicates a possible reversal in the primary trend direction.

Secondary Trend

Start date: November 10, 2022
End date: November 20, 2024

a = 5.1420

b = 0.0006

s = 0.0341

Annual growth rate:

Exp(365 × b) – 1
= Exp(365 × 0.0006) – 1
= 23.20%

Price channel spread:

Exp(4 × s) – 1
= Exp(4 × 0.0341) – 1
= 14.62%

November 10, 2022 calculations

Top border of price channel:

Exp(Y748)
= Exp(a + b × X748 + 2 × s)
= Exp(a + b × 1,085 + 2 × s)
= Exp(5.1420 + 0.0006 × 1,085 + 2 × 0.0341)
= Exp(5.8305)
= $340.52

Bottom border of price channel:

Exp(Y748)
= Exp(a + b × X748 – 2 × s)
= Exp(a + b × 1,085 – 2 × s)
= Exp(5.1420 + 0.0006 × 1,085 – 2 × 0.0341)
= Exp(5.6940)
= $297.08

November 20, 2024 calculations

Top border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 + 2 × s)
= Exp(a + b × 1,826 + 2 × s)
= Exp(5.1420 + 0.0006 × 1,826 + 2 × 0.0341)
= Exp(6.2541)
= $520.12

Bottom border of price channel:

Exp(Y1,257)
= Exp(a + b × X1,257 – 2 × s)
= Exp(a + b × 1,826 – 2 × s)
= Exp(5.1420 + 0.0006 × 1,826 – 2 × 0.0341)
= Exp(6.1176)
= $453.77

Description

  • The secondary trend is increasing.
  • The growth rate of the secondary trend is 23.20% per annum.
  • LIN price at the close of November 20, 2024 was lower than the bottom border of the secondary price channel by $3.63 (0.80%). This indicates a possible reversal in the secondary trend direction.

See Also