NEW BEARISH Plays
Axiall Corp. - AXLL - close: 39.37 change: -0.53
Stop Loss: 40.65
Current Gain/Loss: unopened
Entry on September -- at $--.--
Listed on September 17, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.0 million
New Positions: Yes, see below
Why We Like It:
AXLL is in the basic materials sector. They brand themselves as an integrated chemicals and building products company. Unfortunately for shareholders AXLL has been underperforming the broader market since the stock peaked back in March 2013. The most recent attempt at an oversold bounce happened last week but shares failed at technical resistance near the 50-dma.
Now AXLL is breaking down past round-number support at the $40.00 level. The next level of support looks like the $35.00 mark. The September 13th low was $38.83. I am suggesting a trigger to open bearish positions at $38.75. If triggered our target is $35.25. More aggressive traders may want to aim lower since the P&F chart is bearish with a quadruple-bottom breakdown sell signal and a $29.00 target.
FYI: AXLL is due to begin trading ex-dividend on September 25th. The quarterly cash dividend should be 16 cents.
Trigger @ 38.75
Suggested Position: short AXLL stock @ (trigger)
- (or for more adventurous traders, try this option) -
buy the Oct $40 PUT (AXLL1319v40) current ask $2.00