Thread: WCAP closed up today at 17 after trading down to nearly 14 mid-morning after a selling burst.
My sense is it will close a little higher tomorrow, that is, 17+. And possibly trade as high as 18 Wednesday. And then the next several days (Thursday, Friday, Monday) should be sharply down by 1-2 points per day with a trading range of twice that, with a possible taste of trading down to 12 by Monday, 8/30. How's that for a detailed scenario? This is my sense that history repeats itself and from the oddity of spreads of 1/4 or more, much of the recent trading days, indicating the stock is frail. Time will tell shortly if this sense is reasonable or not....
Afterwards in this next leg down trading range I expect a lower new local low, probably about 8, which may take a month or two to occur. Look for a %RSI near the lower range when below 10. And then I plan to box with the hope WCAP will rally before the next quarterly report which should further make it evident how a closed end fund reports over time after a one pop lump of capital gains in holdings, some of which are much lower now.
Ultimately I expect WCAP to trade under 5 within the year, and once rationalized to a closed end fund valuation, it should remain sticky at that price level (if for that reason).
Best regards,
m |
