WOW at an interesting price level

by Michael Gable

WOW has generally been drifting back since peaking in April this year. It has bounced a few times which has provided some nice trading opportunities, but the recent drop has seen the downwards move accelerate as investors rush out at the last minute. In a report to our clients two weeks ago when it was still up at $34.43, we noted that the share price was likely to head lower towards support at $32.50. The share price has exceeded our target and found itself at the next level of support. If we measure the length of the uptrend that started in 2011 and finished in April this year, you will notice that the stock has retraced 50% of that move. That is normally a key level of support and last Friday’s rally off the lows, on big volume, is a sign that we could have a decent low in place for WOW for the time being. It is also looking heavily oversold on the daily chart. From here, we expect WOW to drag itself higher over the next few weeks or so, and we are looking at resistance between about $34.50 and $35.

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.