Thursday, August 20, 2015

Bemis Company, Inc. (NYSE: BMS)

Bemis Company, Inc. invents, designs, and manufactures packaging products in North America, Latin America, Europe, and the Asia-Pacific. It operates through two segments, U.S. Packaging and Global Packaging. The company offers multilayer polymer, blown, and cast film structures to produce packaging for food, personal care, medical, pharmaceutical, electronics, industrial, and other consumer goods applications. It distributes its products through its direct sales force. The company was formerly known as Bemis Bro. Bag Company and changed its name to Bemis Company, Inc. in 1965. Bemis Company, Inc. was founded in 1858 and is based in Neenah, Wisconsin.
Take a look at the 1-year chart of Bemis (NYSE: BMS) below with added notations:
BMS
After rallying into 2015, BMS started trading sideways over the following 6 months. While in 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.
BMS’s rectangle pattern has formed a resistance at $47 (red) and a $43 support (green).  At some point the stock will have to break one of the two levels.

The Tale of the Tape: BMS is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $43 or on a breakout above $47. The ideal short opportunity would be on a break below $43.

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