Wednesday, March 26, 2014

Ferro Corporation (NYSE: FOE)

Ferro Corporation, together with its subsidiaries, produces and sells specialty materials and chemicals in the United States and internationally. The company operates in five segments: Pigments, Powders, and Oxides; Performance Colors and Glass; Performance Coatings; Polymer Additives; and Specialty Plastics. It offers various performance materials, including frits, porcelain and other glass enamels, glazes, stains, decorating colors, pigments, inks, polishing materials, specialty dielectrics, electronic glasses, and other specialty coatings; and performance chemicals comprising polymer additives, engineered plastic compounds, and pigment dispersions. The company’s products are used in appliances, automobiles, building and renovation, electronics, household furnishings, packaging, and industrial products. It sells its products primarily to the manufacturers of ceramic tiles, appliances, construction materials, automobile parts, glass, bottles, and wall coverings directly, as well as through agents and distributors.
To review Ferro’s stock, please take a look at the 1-year chart of FOE (Ferro Corporation) below with my added notations:
1-year chart of FOE (Ferro Corporation)
Since November FOE had essentially been trading sideways while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. FOE’s rectangle pattern had formed a $14 resistance (red) and a $12 support (green). The break above $14 was not only a break out of the pattern, but it was also a new 52-week high.

The Tale of the Tape: FOE broke its rectangle pattern to a new high. The possible long position on the stock would be on a pullback to $14, while a break back below $14 could negate the expectation for higher prices.
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