EW has been on my watchlist for sometime. It was a great trending stock throughout 2014 but became of real interest when it it gapped up above the 2012 pivot high in October last year.
Since October it has continued to trend up well, with several bullish flags but, over the Christmas period, has gone into a mini-range.
This mini-range could well be a double...
Thought there are still more potential upside,
i choose to short first @ 126.10
It would be better to wait for -ve DI (red) to make higher high and bearish cross of +ve DI (blue) to cross below black signal line.
EW recently had a nice earnings beat and guidance raise. It is showing strong momentum and has broken out of a multi-year pattern. I bought a couple weeks ago, it may be vulnerable to some consolidation shortly but I think it will finish the year strongly. My target is $160 with a stop at $114.
2 months ago, i posted a monthly chart of EW showing a potential H&S consolidation.
The right shoulder seems to be completed half-way except that on daily chart, i anticipated another
higher high, while RSI would give me a higher low for me to buy long term put options.
EW had a weak guidance forecast that disappointed investors and caused a gap lower, I am expecting a rally over the next couple of days to fill that gap by the end of the week.
EW has long term technical horizontal support at $62.50 that has held well all year and held again today. A bullish case can be made for the stock as it has made higher highs prior to the...
