Wayfair (W) is sitting right on a support line that was established on a daily chart . This price level was resistance in July, support in September, and held as support all last week. The level was breached once but it did close above. Wayfair has been in a down trend recently. The point where it bounced Tuesday was right at a Fib Retracement from this big run it has been on, so that is another level to keep in mind if it were to break below the horizontal support line.
What I like about charts like this is that we don't have to guess at what trade to take. Since we are sitting right on a sup/res line, if we open above this line, we can take a long position, with a stop slightly below. If we open below this level, we can take a short position with a stop slightly above. Since we are sitting right on a sup/res line, we will know right away if our trade idea is invalidated and we can exit with minimal losses. This one is on watch for Monday's open to see which direction it opens and what kind of strength or weakness it shows.
What I like about charts like this is that we don't have to guess at what trade to take. Since we are sitting right on a sup/res line, if we open above this line, we can take a long position, with a stop slightly below. If we open below this level, we can take a short position with a stop slightly above. Since we are sitting right on a sup/res line, we will know right away if our trade idea is invalidated and we can exit with minimal losses. This one is on watch for Monday's open to see which direction it opens and what kind of strength or weakness it shows.