Two names in the specialty chemical space are testing important resistance levels, and breakouts project significantly higher prices.

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The daily chart of Ashland Global Holdings (ASH) - Get Report shows the stock rallying sharply off its February low, and then making a series of higher highs and flat lows above support in the $110 area.

After making its most recent high in September, the stock moved down through its 50-day moving average, and back to the long-term support level which is currently being reinforced by the 200-day average. The bounce off this support line this week is now testing a zone of resistance between the $116 and $115 level, which includes the 50-day moving average.

Moving average convergence/divergence is making a bullish crossover, and the relative strength index has crossed above its 21-period average and center line. These readings reflect an underlying improvement in momentum.

During this last consolidation phase, Chaikin money flow has moved higher and is attempting to enter positive territory, and the money flow index, a volume-weighted relative strength measure, has crossed above its 21-period average and center line.

If the pattern of higher highs repeats, a break above the resistance zone projects above the previous September high.

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The Olin (OLN) - Get Report charts shows another rally off the February low that proceeded to track higher with only minor pullbacks.

There was a 21% drop in the stock price after an earnings report that provided weak guidance for the second quarter. It continued lower into September to just below its 200-day moving average, and then began to move higher, recovering both its 50- and 200-day averages, forming a rounded bottom below the $22.10 level in the process.

Daily moving average convergence/divergence is overlaid on a weekly histogram of the oscillator and has crossed above its center line on both time frames, and Chaikin money is well into positive territory. These readings reflect a positive shift in trend and momentum powered by positive money flow.

The stock price has returned to retest the horizontal resistance level, and if it sustains a breakout, there is a resistance vacuum to the top end of the gap.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.