RPM specializes in manufacturing sealants, coatings, and building materials. It operates 124 manufacturing facilities worldwide and sells its products in 170 countries. RPM is the 5th largest paint company in the world and caters to construction and industrial clients. It benefits from its large size and its expertise in manufacturing high-performance products. With a pickup in construction activity in the US and the passage of the $1 trillion infrastructure bill, opportunities for future growth seem to be abundant.
RPM International’s long-term monthly chart shows the price trending up for over a decade since 2009. The period post-2018 has seen an acceleration in the uptrend. However, the price has almost always found support at the bottom trend line. The only exception was the market crash of March 2020. Even then, the price recovered within a month to resume its uptrend. The most recent peak occurred in May 2021, when the price stopped just short of the $100 mark. Since then, the price has pulled back and seems to have found support at the bottom trend line once again. A reversal is likely, and a long position is recommended with a target of $100 and a stop loss below the bottom trend line, at around $83.

Position entered into our long-term tracking portfolio today. The entry point is at $84.68, and stop-loss is at $72.86, which is 14% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $96.78, giving a profit of 29%.