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Commodity Chemical Stocks

Commodity Chemical stocks are pretty boring. While not as sexy as trading a well-known growth stock, making money is still the object. Finding value takes some scholarship and research.

Westlake Chemical Partners – WLKP

In this case, we’ve found an undervalued commodity chemical stock based in Houston, TX.

Westlake Chemical Partners LP operates, acquires, and develops ethylene production facilities and related assets in the United States. The company operates ethylene production facilities, which primarily convert ethane into ethylene. It also sells ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on a spot or contract basis.

Technically speaking the stock is printing a cup and handle continuation pattern. Relative strength versus the S&P 500, upper panel, shows WLKP outperformance. Money flow is bullish.


WLKP Daily Commodity Chemical Stock


A breakout above the handle appears to be in the making. Further upside will cause momentum oscillators, already above the zero-line, to turn higher.

Future Value – WLKP – Commodity Chemical Stock

This image courtesy SimpleWallSt shows that WLKP trades at a significant discount to future earnings. (> 50%)


Commodity Chemical Stock WLKP

More on Commodity Chemical Stock WLKP can be found here:

Futures are trading higher substantially higher. (+20.00)

Tune in this morning at 9:20 AM for the Post-July 4th broadcast.

Happy Trading,


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