Jarden Corporation manufactures, markets, and distributes consumer
products worldwide. The company’s Outdoor Solutions segment offers
camping and outdoor equipment. Its Consumer Solutions segment provides
household kitchen appliances, such as blenders, coffeemakers, irons,
mixers, slow cookers, teakettles, toasters, toaster ovens, and vacuum
packaging machines. The company’s Branded Consumables segment offers
fresh preserving jars and accessories. Its Process Solutions segment
produces plastic products. The company was founded in 1991 and is
headquartered in Boca Raton, Florida.
Take a look at the 1-year chart of Jarden (NYSE: JAH) below with added notations:
After rallying nicely from mid-October until the end of January, JAH
has been trading mostly sideways over the last 3 months. During the
sideways move the stock has formed 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.
JAH’s rectangle pattern has formed a resistance at $54 (red) and a
$51 support (blue). At some point the stock will have to break one of
the two levels, and the stock’s recent trendline (green) break of
support might be foreshadowing an eventually break of rectangle support
too.
The Tale of the Tape: JAH is trading within a
rectangle pattern. The possible long positions on the stock would be
either on a pullback to $51 or on a breakout above $54. The ideal short
opportunity would be on a break below $51.
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