The Valspar Corporation (NYSE: VAL)

The Valspar Corporation manufactures and distributes various coatings, paints, and related products worldwide. The company operates in two segments, Coatings and Paints. The Coatings segment offers decorative and protective coatings for metal, wood, and plastic primarily for original equipment manufacturing customers. The Paints segment offers consumer paints consisting of interior and exterior decorative paints, stains, primers, varnishes, and floor paints, as well as specialty decorative products, such as enamels, aerosols, and faux finishes that are used in do-it-yourself and professional markets.
Please take a look at the 1-year chart of VAL (The Valspar Corporation) below with my added notations:
For the last (9) months VAL has been bouncing in the same general area while hitting a peak at $75 in May. Over that same period of time, the stock has created an important price level of $60 (blue) that has acted as both support and resistance whenever the stock has come in contact with it. In addition, the stock has another key level below $60 at the $55 (red).
The Tale of the Tape: VAL is approaching $60 again. A long trade could be made on a pullback down to $60 with a stop placed below that level. A break of $60 would be an opportunity to short the stock and should mean a fall back down to $55 where another long trade could be made.
Please share this article