February 18, 2009
Trading Patterns
By Planet Wealth
WDC has been in a strong down trend since September last year. At the beginning of the year the stock took a sharp fall away from the weekly down trend.
Once WDC reached $10.10 it found strong support from past trading patterns, bounced and has now come back to touch this support again. This is the beginning of a potential Double Bottom pattern (DB). If this week was to produce a Bullish Up Day breaking past the small term down trend, WDC is likely to see $12.00 again, which is a cross section of a medium term weekly down trend and past significant support. Should the stock bounce off $10.00 this week, $12.00 would be the 50% Fibonacci retracement level as well.
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Topics: stock market, Technical Analysis, trading patterns, trading room | No Comments »
