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Westlake Chem. - WLK - close: 30.02 chg: -3.25 stop: 32.01

Company Description:
Westlake Chemical Corporation is a manufacturer and supplier of petrochemicals, polymers and fabricated products with headquarters in Houston, Texas. The company's range of products includes: ethylene, polyethylene, styrene, vinyl intermediates, PVC and PVC pipe, windows and fence. (source: company press release)

Why We Like It:
We like WLK as a short candidate due to today's high-volume technical breakdown. The stock cracked the $30.00 level on volume about four times the averages. The last four analyst comments have all been downgrades with the latest one hitting the stock today. Prudential downgraded WLK to an "under weight". Today's decline also helped produce a new quadruple-bottom breakdown sell signal on its P&F chart. The P&F chart now points to a $22.00 target. There was a last hour oversold bounce in WLK back above the $30.00 level. Therefore we suggest that readers use a TRIGGER at $29.19, which is under today's low. If WLK trades at $29.19 or lower we suggest shorting the stock with a $25.00-25.50 target. The $25 level should be round-number, psychological support, which is also supported by the exponential 200-dma and the simple 200-dma below that. Our time frame is about one month. We will exit before the mid-May earnings.

Picked on April xx at $xx.xx <-- see TRIGGER
Change since picked: - 0.00
Earnings Date 05/09/05 (unconfirmed)
Average Daily Volume: 207 thousand
 

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