Axiall Corporation operates as an integrated chemicals and building
products company in North America and Asia. The company manufactures
chlor-alkali and derivatives, chlorovinyls, and aromatics products,
including chlorine, caustic soda, ethylene dichloride, vinyl chloride
monomer, polyvinyl chloride, vinyl resins, vinyl compounds, compound
additives and plasticizers, chlorinated solvents, calcium hypochlorite,
muriatic acid, phosgene derivatives, acetone, cumene, phenol, and
alpha-methylstyrene. These products are used in various applications,
including plastics, pulp and paper production, packaging, chemical
intermediates, pharmaceuticals, medical and agricultural applications
and paints, acrylics, and varnishes. It also produces vinyl-based
building and home improvement products, such as window and door
profiles, siding products, pipe and pipe fittings, moldings, and trim
and decking products, which are marketed under the Royal Building
Products, Celect, Zuri, Korflo, Overture, S4S, and Exterior Portfolio
brand names for the electrical, municipal, irrigation, plumbing, and
residential and industrial applications.
To review a current H&S pattern, please take a look at the 1-year
chart of AXLL (Axiall Corporation) below with my added notations:
AXLL had been on a 10-month rally since its bottom in June. Over the
last (4) months the stock has created a very important level at $51
(navy), which was also the “neckline” support for the H&S pattern.
Above the neckline you will notice the H&S pattern itself (blue).
Confirmation of the H&S occurred when AXLL broke its $51 “neckline”
support. So, the stock should be moving lower overall from here.
Keep in mind that simple is usually better. Had I never pointed out
this H&S pattern, one would still think this stock is moving lower
simply if it broke below the $51 support level. In short, whether you
noticed the pattern or not, the trade would still be the same: On the
break below the key $51 level.
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