Conclusion, Investment Implications, Strategy
Silgan Holdings Inc.(SLGN) appears to be resuming its larger 2020 advance following a 14% corrective decline from the October 12th high. A sustained rise above the $33.95 area would target an additional 14% rise to $40.44 per share. This is an Asbury Value trade idea.
Analysis and Rationale
Silgan Holdings Inc.(SLGN), together with its subsidiaries, manufactures and sells rigid packaging for consumer goods products in North America, Europe, and internationally. It operates through three segments: Metal Containers, Closures, and Plastic Containers. The company markets its products primarily through direct sales force, as well as through a network of distributors and an online shopping catalog. Silgan Holdings Inc. was founded in 1987 and is headquartered in Stamford, Connecticut.
Chart 1 below plots SLGN daily since March, showing that it appears to be resuming its April major uptrend by recently testing and rebounding from major underlying support at $33.95, the current location of its 200-day moving average (major trend proxy). Not shown is that a number of key market internals are also improving.
A sustained rise above the $33.95 area would target a 14% advance to retest the Oct 12th all-time high.
Chart 1
Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $33.97 area, a long entry price of $35.45 would provide a 1:3.4 risk/reward ratio (risking $1.00 to make $3.40) with an initial risk of 4.2%.
Table 1
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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.