VAL (Valspar Corp) is about to paint the charts red (pun intended) along with competing paint company, SHW (Sherwin Williams).  There are a couple of things to note on the daily chart of VAL.  To begin with, VAL recently put in an Island Cluster Reversal Pattern, which is a potentially powerful candlestick topping pattern.  The formation of this pattern began with the giddy Jan 2nd rally gap up and was completely recently with the large gap down on Feb 12th.  Coincidentally or not, that gap down managed to bring prices just below VAL’s primary uptrendline which began with the Aug 2011 lows.  Prices have since struggled to regain that trendline as VAL has backtested it from below for the last week or so.  Therefore, I’m adding VAL as a active short here at 62.07 with an initial target of 55.55.  A logical stop would be on a move above the 64 level, which is just above the lowest point of the island cluster of prices.  Daily & weekly charts below.  SHW setup to follow.