Methanex Corporation produces, supplies, and sells methanol to
petrochemical producers and distributors. The company also purchases and
re-sells methanol produced by others. Its methanol is a clear liquid
commodity chemical that is used to produce traditional chemical
derivatives, including formaldehyde, acetic acid, and various other
chemicals. The company’s methanol is used in energy-related
applications; for blending into gasoline, as a feedstock in the
production of dimethyl ether, which can be blended with liquefied
petroleum gas for use in household cooking and heating, and in the
production of biodiesel; and to produce methyl tertiary-butyl ether, a
gasoline component, as well as used into olefins applications. In
addition, it operates a fleet of methanol ocean tankers with a capacity
ranging from 3,000 to 100,000 deadweight tons.
To review Methanex’s stock, please take a look at the 1-year chart of
MEOH (Methanex Corporation.) below with my added notations:
MEOH has formed a key level of support at $55.00 (blue) over the last
(3) months. In addition, the stock has created a down trending
resistance starting from the middle of November (red). These two lines
combined have MEOH stuck trading within a common chart pattern known as a
descending triangle. At some point, the stock has to break support or
break its string of lower highs.
The Tale of the Tape: MEOH has formed a descending
triangle pattern. A short trade could be made on a break of the $55.00
support level. A break through $60.00 would break the down trending
resistance and would set up a potential long trade.
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