Air Liquide consolidation period forms a pennant pattern

Market trader analysing data
Air Liquide, an industrial gases supplier, reported it has signed a long-term agreement with American steel producer Steel Dynamics to supply industrial gases to Steel Dynamics' new Electric Arc Furnace steel mill in Texas. The company said it will invest more than 100 million dollars to install an Air Separation Unit (ASU) on its Gulf Coast pipeline network, which will have a daily production capacity of 770 tons of gaseous oxygen, nitrogen, and argon.

From a chartist point of view, the stock price remains supported by a rising trend line in place since March low. The 20DMA remains in support of the bullish trend. However, the daily RSI struck against 70% and is reversing down, calling for caution. A pennant pattern is taking shape. A validation of the pattern would call for a further rise towards the former high at 140.7E. Alternatively, a break below 125.5E would call for a reversal down trend with 119.3E as first target. 

Source: GAIN Capital, TradingView


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