Axiall continues its bullish trend in order to test new highest level.
The company shows strong fundamentals. Firstly, the security is undervalued compared to its peers with an EV/Sales ratio estimated at 0.56 by the Thomson Reuters consensus for this year. Moreover, the consensus revised upward EPS estimates for this year and that let see a great potential for the security on the stock market.
Technically, the security shows a bullish configuration on all time scales. Prices are supported by increasing moving averages. In weekly data, 20-week moving average helps the stock to keep its uptrend and the crossing of the trendline give us another argument.
According to both technical and fundamental elements, it seems opportune to take a long position at the current price. The bullish trend should allow the security to reach the USD 59.5 resistance. If the stock crosses it, a new target price will be set. A stop loss will be placed under the USD 50.4 short term support to avoid a downtrend.
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