(Premium) April Materials Outlook

Within the Materials sector, there aren’t many great setups given how few companies there are. The sector itself is stuck in the middle of a big range on both the absolute and relative charts.

Linde is still one of our favorites. It’s above the January 2022 highs, which offer support on any further pullbacks and a clear level to manage risk against. That’s also the 261.8% Fibonacci retracement from the 2020 selloff. If LIN is above 350, our target is the 423.6% retracement from that decline, up near 470.

Here’s another great setup we’re watching. PPG stock has challenged this resistance level at 138 five times over the past year. The more times a level is tested, the more likely it is to break, so we’ll be watching closely in the coming weeks. If PPG is above 138, we want to own it with a target above 170, near the former highs.

It’s not just PPG’s chart that caught our eye. Its sub-industry is working on a failed breakdown relative to the S&P 500 index.

From failed moves often come fast moves in the opposite direction, so this could be the catalyst that reverses an 18-month relative downtrend for the industry, and propels PPG to meaningful outperformance.

View the rest of our April outlook:

April Technical Market Outlook 
(Premium) April FICC Outlook 
(Premium) April Information Technology Outlook 
(Premium) April Communication Services Outlook
(Premium) April Consumer Discretionary Outlook
(Premium) April Industrials Outlook
(Premium) April Financials Outlook
(Premium) April Energy Outlook 
(Premium) April Materials Outlook 
(Premium) April Health Care Outlook
(Premium) April Consumer Staples Outlook
(Premium) April Real Estate Outlook
(Premium) April Utilities Outlook 

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