Silgan Holdings (SLGN) manufactures about half of the metal food containers in North America. Its major customers include Campbell Soup, Nestle, and Del Monte. The company’s other business segments include plastic containers for personal and healthcare products and a closures business that manufactures metal and plastic lids and caps. SLGN continues to benefit from the demand for staple products such as food, beverage, consumer health, and personal care products due to the coronavirus pandemic.
Take a look at the 1-year chart of SLGN below with my added notations:
Chart of SLGN provided by TradingView
SLGN had formed a key level of resistance at $39 (green) during the past couple of months. However, the stock broke through that resistance yesterday. If SLGN comes back down to that $39 level, which should now act as support, a bounce could be expected.
SLGN broke through its key level of resistance at $39. A long trade could be entered on a pull back down to that level. However, a break back below $39 could negate the forecast for a higher move and would be an opportunity to short the stock.
Have a good trading day!
Christian Tharp, CMT