Westlake Chemical (WLK) Showing Signs Of Being Water-Logged And Getting Wetter

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Westlake Chemical ( WLK) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Westlake Chemical as such a stock due to the following factors:

  • WLK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $62.2 million.
  • WLK has traded 2.5 million shares today.
  • WLK traded in a range 313.5% of the normal price range with a price range of $5.61.
  • WLK traded below its daily resistance level (quality: 32 days, meaning that the stock is crossing a resistance level set by the last 32 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in WLK with the Ticky from Trade-Ideas. See the FREE profile for WLK NOW at Trade-Ideas

If you liked this article you might like

Analysts' Actions -- Chemours, Incyte, Visteon, Toyota and More

Slim Pickings for Thanksgiving in Value Land

Here's a Lasting Chemical High for Those With the Election Blues

Election Endgame: How to Survive the Week Ahead