Saturday, September 22, 2012

Saturday Rock Blog: Hold On Tight (WFT)

Like most stocks in the market right now, WFT has a really nice (i.e. bullish) looking daily chart. After hanging out in a narrow range ~11.50-13 for four months, the Euorpean oil and gas equipment company broke out on news of QE3. Unfortunately, the break didn't come on strong volume and the stock pulled all the way back to the top of the range. It even slipped below $13 to 12.59 yesterday but surged back above to close at $13.54 on four times the average volume. Needless to say, I'm looking for further upside to perhaps $14.50-15 on this move. If WFT can hold above its 200 dma we could be looking at a much longer term reversal of the downtrend.

Disclosure: I am long WFT.

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