WDFC, the manufacturer of WD-40 ( sprayable graphite) had a great earnings beat and
a celebratory pop of 5%. My question is whether it can continue? On the 15 minute chart
I have added four indicators and what they might indicate:
(1) the Lorentzian Machine Learning Alert System with default settings with a few removed which shows the initial buy signal of July 6th. No sell signal has been printed since earnings.
(2) the MTF RSI indicator of Chris Moody showing the RSIs one hour in black and 15-minutes
in blue presently topped out and the lower TF in blue decreasing showing a bearish divergence.
(3) The MACD shows K / D lines rising in parallel but very extended above the zero-line showing
very high amplitude.
(4) The volume indicator showing that volume did not get a relative spike with the post-earnings
price pop.
Overall, with heavy consideration of lack of volume with the price pop and the bearish
divergence on the RSI, I will not take a long trade on this post-earnings WDFC. In fact, if
I can find a good entry on a 3 or 5-minute chart, I will take a short trade. I price rise
with a good volume spike might potentially convince me otherwise.
a celebratory pop of 5%. My question is whether it can continue? On the 15 minute chart
I have added four indicators and what they might indicate:
(1) the Lorentzian Machine Learning Alert System with default settings with a few removed which shows the initial buy signal of July 6th. No sell signal has been printed since earnings.
(2) the MTF RSI indicator of Chris Moody showing the RSIs one hour in black and 15-minutes
in blue presently topped out and the lower TF in blue decreasing showing a bearish divergence.
(3) The MACD shows K / D lines rising in parallel but very extended above the zero-line showing
very high amplitude.
(4) The volume indicator showing that volume did not get a relative spike with the post-earnings
price pop.
Overall, with heavy consideration of lack of volume with the price pop and the bearish
divergence on the RSI, I will not take a long trade on this post-earnings WDFC. In fact, if
I can find a good entry on a 3 or 5-minute chart, I will take a short trade. I price rise
with a good volume spike might potentially convince me otherwise.
Trade active:
Bullish momentum convinced me to take the trade long - shortly after the price movement allowed for the stop loss to be raised to gauarantee a winning trade.