Braskem S.A. produces and sells thermoplastic resins. Its Basic
Petrochemicals segment offers olefins, such as ethylene, polymer and
chemical grade propylene, butadiene, isoprene, and butene-1; BTX
products comprising benzene, toluene, ortho-xylene, para-xylene, and
mixed xylenes; fuels, including automotive gasoline and liquefied
petroleum gas; intermediates, such as cumene; and other basic
petrochemicals, which include ethyl tertiary butyl ether, solvent C9,
and pyrolysis C9. The company’s Polyolefins segment produces
polyethylene, including LDPE, LLDPE, HDPE, UHMWPE, and EVA; green
polyethylene from renewable resources; and polypropylene (PP). Its
Vinyls segment produces polyvinyl chloride, caustic soda, chlorine,
hydrogen, caustic soda flake, and sodium hypochlorite. The company’s USA
and Europe segment produces PP in the United States and Germany. Its
Chemical Distribution segment distributes solvents, including aliphatic,
aromatic, synthetic, and ecologically friendly solvents; engineering
plastics; hydro carbonic solvents and isoparafins; and general-purpose
chemicals.
Take a look at the 1-year chart of Braskem (NYSE: BAK) with the added notations:
Unlike most energy related stocks, BAK actually hasn’t hit a new low
recently. However, the stock’s trend does look like its peers within the
energy sector, which is down. Over the past 5 months BAK has formed a
key support level at $6.50, while also forming a trendline of resistance
since November. At some point, one of those two lines will have to
break.
The Tale of the Tape: BAK has an important level of
support at $6.50. A trader could enter a long position at $6.50 with a
stop placed under the level, or on a break through the trendline
resistance. If the stock were to break below the support a short
position could be entered instead.
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