Here’s a follow up on our Weight Watchers (WTW) trade. (November 06, 2018)
WTW
Weight Watchers ( NYSE: WTW ). A couple days ago the stock went on a crash diet. We know this, this is Friday, I talked about this recently, about the importance of just waiting for the stock to make a move. It made that move yesterday; I just went over that yesterday.
So what do we do now? If you missed my video yesterday and you are still looking for a way in I’ve got your bogey here. Here’s the deal: This is a hammer pattern, it looks like Thor’s hammer with a little but longer hammer than that guy had. So what you want to do is this: The opening print today was 51.63. I think you can still get a couple more dollars out of this stock on a reversal. It is just very, very oversold but I wouldn’t buy it until it moves ABOVE today’s opening print, which again, is 51.63. Until that time your stock could move lower. We have still got all this area down here that the stock could fall into.
So the only time you really want to be buying this stock is when there has been enough buying pressure to push the stock to levels that it has not seen until last week when it is on its way down. Because what that tells us is that everybody that was in pain, a bought down here, they are either hanging on or they have already sold. In which case buyers are going to need to reach up for price and that should drive the stock up; my bet would be to $55.00. If the stock pushes above the opening here, 51.63, I think you could take the stock and look to sell it to around $55.00. Me, because I want to sell a little too soon, let’s say $54.92, how’s that?
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