Hi Energyplay! I'm glad I was able to assist in getting you a lower price on WM. I hope you don't mind if I continue to give some analysis regarding WM.
stockcharts.com[h,a]daclyymy[pb50!b200!b25!b9!f][vc60][iut!Ub14!Ua12,26,9!Lh14,3!Lc20]
Today's trading pattern is similar to a hammer but not as significant. A hammer has more significance when it appears at during a long downtrend, or if it appears during a long uptrend where it is called a hanging man.
Today's pattern does show some encouragement though in that it rebounded, once again, from under 40. However, WM did not close above the 9 day moving average. In my opinion, it would be more beneficial to give up a half percent or one percent profit to insure the price closes above a moving average. It's the momentum we should be looking for to help move our stocks up. You may get that momentum from the sector, I don't know because I haven't been watching it.
As we look to buy stocks in this bear market, I think it is critical to buy stocks when they move above a moving average, (if you're going long), as this would indicate money flows are headed their way.
This doesn't insure success but it does enhance your chances.
The stochastics are hovering at the 50 line. This is a line of support. It hasn't indicated which way the trend is going to go yet. A break below 50 is bad news. A bounce off the 50 line would be encouraging. In my opinion, it's important to know where this indicator is headed before taking any action on WM, long or short. Ditto the relative strength indicator as it is level just above the 50 line, key word being level. We need movement, one way or the other to determine a prudent decision.
The MACD Indicator, which measures the trend, shows WM is still trending lower. The MACD Indicator DOES NOT ever indicate overbought or oversold, it only measures the trend. Those blue lines that look like volume lines aren't volume lines. They're called histograms. They serve to show the convergence or divergence in relation to the share price regarding its trend. They are still indicating further strength to the downside.
All of this doesn't mean WM is going to fall further, it may not. All of this is supposed to help you determine the trend of the market and help you gauge the market sentiment, psychology if you will, between the buyers and sellers.
If we can visualize a tug of war between buyers and sellers, the technical indicators are showing the sellers pulling the buyers ever so slowly towards the line of defeat. The buyers need to catch their second wind and to do that a catalyst is needed. I haven't looked for that catalyst, so it may be there. My purpose here is to help people understand what and how the technical indicators work.
Good luck energyplay. I hope WM works out for you. My next post is going to show what I look for short term and how it helps one to profit often in these tough times.
dabum |
