Chart of the Day: Westlake Chemical (WLK)

In studying charts yesterday, I noticed that a descending triangle has formed in Westlake Chemical Corp. (WLK) that could result in a winning trade…

Westlake Chemical manufactures and markets petrochemicals, polymers and fabricated building products. It operates through the Olefins and Vinyls segments.

Though it’s well off its $75.65 52-week high, WLK has seen a substantial rebound from its March lows when it reached $28.99.  At yesterday’s close the company was trading at $53.36.

Over the past month, WLK has tested $50 two times and this a support level as formed (green).  Also, a trendline of resistance (red) has formed.

Together, these two lines have formed a descending triangle.  Take a look at the 1-year chart of Westlake below with my added notations…

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