Sunday, March 29, 2009

WTW following pennant flag formation

WTW (Weight Watchers) is following a pennant flag formation, visible on a one-hour chart from March 4 to March 27. The lower trendline extends from the price low on March 4 upward to the low on March 27; the upper line is actually flat, extending from the gap-up opening on March 5 to the high on March 26 (significant overhead resistance). I will watch this one for a pennant formation breakout.

A stop limit should be set at 19.19, which is the low on March 25. However, I want to capture the 17 cent dividend paying on March 31, so I will set my stop limit at 19.02.

No comments:

Post a Comment