Please take a look at the 9-month chart of WLT (Walter Energy, Inc.) below with my added notations:
WLT found support at $10 (blue) twice back in June and August. The stock then managed to rally up to a high of almost $20. Now the stock has approached $10 again and that might provide another bounce higher. However, the stock’s recent lagging of the overall market could be setting the stock up for a breakdown.
The Tale of the Tape: WLT has a key level of support at $10. A trader could enter a long position at $10 with a stop placed under the level. If the stock were to break below the support, a short position would be recommended instead.
Please share this article
No comments:
Post a Comment