Friday, July 20, 2012

Newell Rubbermaid Inc. (NYSE: NWL)

Newell Rubbermaid Inc. designs, manufactures, and markets consumer and commercial products. It operates in three segments: Home & Family, Office Products, and Tools, Hardware & Commercial Products. The Home & Family segment offers indoor/outdoor organization, food storage, and home storage products; infant and juvenile products, such as car seats, strollers, highchairs, and playards; drapery hardware, window treatments, and cabinet hardware; gourmet cookware, bakeware, cutlery, and small kitchen electrics; and hair care accessories and grooming products to mass merchants, specialty stores, and grocery/drug and department stores. The Office Products segment provides writing instruments, including pens, pencils, markers and highlighters, and art products. The Tools, Hardware & Commercial Products segment offers industrial band saw blades and cutting tools for pipes and HVAC systems; hand tools and power tool accessories; manual paint applicators, window hardware, and convenience hardware.

To review Newell's stock, please take a look at the 1-year chart of NWL (Newell Rubbermaid, Inc.) below with my added notations:

After rallying higher from October until February, NWL has been chopping up an down within a long Rectangle over the last (5) months. A Rectangle pattern forms when a stock gets stuck bouncing between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. For NWL, the Rectangle pattern has formed a $19 resistance (red) and a $17 support area (navy).

The Tale of the Tape: NWL has formed a common Rectangle pattern. The possible long positions on NWL would be either on a pullback to $17, or on a breakout above $19. The ideal short opportunity would be on a break below $17.

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