Wednesday, January 20, 2016

Wayfair Inc (NYSE: W)

Wayfair Inc. engages in the e-commerce business in the United States. It offers approximately seven million home products under various brands. The company’s brands include Wayfair.com that focuses on offering home furnishings and d├ęcor from low-to high-end and across various styles; Joss & Main, an online flash sales site; AllModern, an online destination for original design for modern home enthusiasts; DwellStudio, an online design studio for modern, fashion-forward home furnishings; and Birch Lane, a destination for classic style home designs. Wayfair Inc. also sells its products through retail partners.
Take a look at the 1-year chart of Wayfair (NYSE: W) below with my added notations:
1-year chart of Wayfair (NYSE: W)
Over the past year W has been trending consistently higher, while also forming a nice trend line of support (blue) the majority of the time. Always remember that any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its relevance. A pullback to that line will provide trading opportunities, one way or another.

The Tale of the Tape: W has a trend line support to monitor. A long position could be entered on a pullback to the trendline, with a stop placed below the level of entry. A short position could be entered if W were to break below its trendline.

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