Trading opportunities with WorleyParsons (WOR) | Michael Gable | Finance News Network

Trading opportunities with WorleyParsons (WOR)

by Michael Gable

In my regular note to clients in early April, I was negative on WOR and was anticipating a drop down towards $26. The stock has obviously overextended on the downside due to problems overseas. Looking at the chart now, it appears to me that a valid low is in place. A reversal signal has formed (circled), and we can see the momentum picking up over the last few weeks. This tells me that if you are keen on WOR, you can buy it around current levels. I anticipate an initial rally up towards $27.50 before the stock will find some meaningful resistance.

Potential Strategy
Any rally up towards $27.50 would be an opportunity to write a covered call as price action is still expected to remain volatile for a number of weeks. A reversal up at those levels could also be a shorting opportunity for CFD traders. Just ensure the stop loss is at the high point of your reversal signal.

Disclaimer

Disclaimer: Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.