Westlake Chemical Corporation (NYSE: WLK)

Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and fabricated building products. It operates in two segments, Olefins and Vinyls. The Olefins segment provides ethylene, polyethylene, styrene monomer, and various ethylene co-products, such as chemical grade propylene, crude butadiene, pyrolysis gasoline, and hydrogen. The Vinyls segment offers polyvinyl chloride (PVC), vinyl chloride monomer, ethylene dichloride, chlorine, caustic soda, and ethylene. This segment also manufactures and sells products fabricated from PVC, including water, sewer, irrigation, and conduit pipes; window and door profiles; and fences. The company's products are used in various applications, such as consumer and industrial markets comprising flexible and rigid packaging, automotive products, coatings, and residential and commercial construction, as well as in other durable and non-durable goods. Westlake Chemical Corporation provides its products for chemical processors, plastics fabricators, construction contractors, municipalities, and supply warehouses in the United States, Canada, Singapore, and internationally.

Westlake's stock is forming a head and shoulders (H&S) pattern. Please take a look at the 1-year chart of WLK (Westlake Chemical Corporation) below with my added notations:

WLK started a nice rally in June from $50 that peaked in October and November at $80. Over the last (3) months though, the stock has created a very important level at $70 (navy), which would also be the “neckline” support for WLK's H&S pattern. Above the neckline you will notice the H&S pattern itself (red). Confirmation of the H&S would occur if the stock broke below its $70 support. If WLK breaks that level, the stock should move lower from there.