Stepan Company is a specialty chemicals company. It is a leader in surfactant chemicals and is considered the world’s largest manufacturer of anionic surfactants. These surfactants enhance the foaming and cleaning ability of shampoo, detergents, cosmetics, and toothpaste. Stepan also sells essential raw materials used in the construction and automotive industries. Detergent manufacturers don’t change their formulas very often. So, the demand for Stepan’s products is sustainable and stable. The long-term growth prospects of the company are bright.

The Long term monthly chart for Stepan shows a long-term uptrend since 2011. There were significant pullbacks in 2014 and 2020. However, the price recovered in both those instances only to resume making higher tops and higher bottoms. From 2019 to 2020 saw the price break the bottom of the long-term trend, which has otherwise provided support. The most recent peak came in May 2021, when the price went above $139. Since then, the stock fell about 15%, and it now appears to be finding support at the bottom trend line. The likely target is $138-$139. A stop-loss can be placed below the bottom trend line at around $110.

Position entered into our long-term tracking portfolio today. The entry point is at $115.39, and stop-loss is placed at $84.71, 27% below the entry point. The short-term to medium-term take profit at the top of the trend is set at $140.39, giving a profit of 22%.