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.
