According to Morningstar.com, Harsco Corp. (HSC) “… provides industrial mill services to steel and nonferrous metal producers in more than 30 countries, including the United States.”
The history of Harsco’s (HSC) price history is important to the current activity in the stock price. In the review, we cover the history of the stock price based on the Edson Gould’s Speed Resistance Lines [SRL] with Dow Theory.
Downside Target Review
In the period from 1982 to 1990, the price of HSC rose from a low of $2.50 to a high of $9.66. Based on this information, we arrived at the following downside targets:
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$6.39
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$4.81
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$3.17
We’ve highlighted the point made in Dow Theory that a stock will often retest a previous low after a prior peak in the stock price. In this case, the retest level was the $5.88 price which was ultimately penetrated to the downside to the ultimate low of $4.50 in 1990.
In the period from 1990 to 2000, HSC had the following downside targets:
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$13.85
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$10.85
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$7.85
The Dow Theory retest after a major decline lasted over a period of two years from 1998 to 2000. All of the downside targets were achieved.
In the period from there was a decline that appears worth mentioning because it occurred within a rising trend that culminated in peak price that was three times the 2002 high. In the runup from the 2000 low to the 2002 peak, HSC had the following downside targets:
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$19.24
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$13.29
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$7.33
The Dow Theory retest after the peak was consistent and could have been at either of the two points indicated on the chart. If you missed the first indicator then you had a second shot at getting the retest at the second major low in the stock.
Worth pointing out is the fact that the extreme downside target of $7.33, from a technical standpoint, was suggesting much lower levels than could be indicated on this chart. We wonder if the low of HSC in 2016 at $3.67 might have been indicated in the SRL of 2000 to 2003.
2000-2018: Upside and Downside Targets
Below are the upside and downside targets based on the low of 2000 to the peak of 2016.