Westlake Chemical Corp. (NYSE: WLK) shares rose in value Monday Nov 21 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.
Meanwhile, stocks were set to open higher this morning. The Dow Jones Industrial Average futures YMZ6, +0.20% was 10 points, or less than 0.1%, higher at 18,863, while S&P 500 index futures ESZ6, +0.44% rose 3.95 points, or 0.2%, at 2,184.75. Nasdaq-100 NQZ6, +0.74% added 12.25 points, or 0.2%, to 4,820.75.
Analysts at Vertical Research upgraded shares of Westlake Chemical Corp. (NYSE: WLK) from Hold to Buy today. With a rating of Buy on the stock, Westlake Chemical Corp. has a 52-week high of $60.95. The one-year price target of $57.27 is higher than the opening price of $53.98, that has caused a number of other analysts to report on the stock recently. Typically, after analysts publish an upgrade report on a stock, they will later issue sporadic revisions, usually followed by a price target change.
Westlake Chemical Corp. (NYSE: WLK) shares last traded at $55.55, which is an increase of $2.72 or 5.15% from the previous closing price. Opening at $53.98, they ranged from $53.65 and $55.91 throughout the day.
Westlake Chemical Corp. (NYSE: WLK) currently has a market cap of 7.16B.
Westlake Chemical Corp. (NYSE: WLK) Average Daily Trading Volume
359,805 shares traded hands yesterday, lower than the average, out of a total float 36,308,000. Trading volume is likely to increase in the next few days as momentum traders often use swings in trading volume to identify substantial volume growth or circulation by institutional investors.
However, one day of high volume buy side trading is not enough to determine a trend. So market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Professional investors such as these have teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Westlake Chemical Corp. (NYSE: WLK) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By identifying trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
With that in mind, Westlake Chemical Corp. (NYSE: WLK) now has a 50-day MA of $52.74 and 200-day MA of $48.19. It has traded in a 52-week range between $39.48 – 60.95 and today’s last price is 8.86%% lower than the 52 week high of $60.95.
Indeed, earnings growth is among the most important things to look at in regards to stock investing and, accordingly, investors seek companies that have increased their earnings by at least 25% over a 3 year period.
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