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Possible Bearish Inside Day Candle Pattern Detected for Westlake Chemical (NYSE:WLK)

By Shiri Gupta

SmarTrend's candlestick scanner has spotted a possible bearish inside day candle pattern in Westlake Chemical (NYSE:WLK) based on the price action in the company's shares. Yesterday's price range of $50.09 and $50.77 is within the prior day's high and low of the day. This trading action often signifies indecision by bulls and bears to drive prices higher or lower and often implies a possible change in trend. Owners of Westlake Chemical may want to consider a possible hedge in the event a pullback occurs. Look for confirmation in the next few trading days.

Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and fabricated products. The Company serves a range of consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, and residential and commercial construction.

There is potential upside of 34.5% for shares of Westlake Chemical based on a current price of $50.64 and an average consensus analyst price target of $68.10. Westlake Chemical shares should encounter resistance at the 200-day moving average (MA) of $52.52 and support at the 50-day MA of $46.88.

In the past 52 weeks, shares of Westlake Chemical have traded between a low of $39.48 and a high of $77.59 and closed yesterday at $50.64, which is 28% above that low price. In the last five trading sessions, the 50-day moving average (MA) has climbed 1.0% while the 200-day MA has slid 0.6%.

SmarTrend recommended that subscribers consider buying shares of Westlake Chemical on July 12th, 2016 as our proprietary SmarTrend analytics indicated a new Uptrend was in progress when shares hit $44.51. Since that recommendation, shares of Westlake Chemical have risen 14.4%. We continue to monitor WLK for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: bearish am inside day candle westlake chemical

Ticker(s): WLK