All set to collapse?Looks like a double top formation. I expect this to test 80s soon and then collapse to covid lows.
WMS
WMS - Short Setup Break 113.83. Stop signal 122.19, Target 85.19.For more aggressive traders one could also consider a together stop of 118.63. With tighter stops you get a much better risk reward (in this case 6+ to 1 instead of 3.5 to 1) but of course the potential for a stop out caused by market noise is higher. See Tuesday Trading Room for full breakdown on this topic.
WMS - Short Setup (short) break below 113.87. Stop above 120.56. Insider Selling throughout this year, most recently in march at 103.61 from 2 directors/10% owner.
WMS-What the trend has told us to look for at the current levelsWMS has a significant mark-up phase if it can break supply, and hold demand above the $111-$113 range.
First, let us take a look at the red-on-red filled candle (highlighted yellow) at $111.11 open from 02 March 21
When back testing the resulting move following a breakthrough of similar candle-based indications, the price action has continued into a steady uptrend. These candles do not often require a re-confirmation of demand within this trend, following a confirmed break. If reconfirmation of lack of supply is needed at alerted levels, it is often filled as a level of confirmed support.
Below are examples of moves following this candle-based strategy. These candles have indicated a nice base set up for continuation throughout the current uptrend.
A firm break of the top red-on-red candle from the prior uptrend, served as a point of no return for this uptrend.
The prior uptrend set up a similar supply zone as the current trend. Once this level was broken to the down-side, the trend moved to gap down and fill the indicated candles.
These previous set-ups give us a pair of moves that will give good indication of which way WMS will trend.
Short set-up - A rejection of the current formed supply will likely see a move down to test the unfilled red-on-red candles as support at the below price targets.
Long set-up - A break with confirmation of demand will likely trend to the above expected resistance before re-testing supply levels at the break. A true lack of supply break could see an unrestricted move to the top indicated price targets and testing down to the $118-$120 level as mid-level support.
Watchlist ideas - 4/21/2020 - $NUGT $APT $WMS $DISGold has been a very volatile commodity last month but looks like a recovery is in the midst, $NUGT looks good for another leg up here. Long above 12 with a stop loss at 10.48.
APT, a coronavirus play, has been consolidating right above the rising 5DMA. I think APT is right about to lift here. Good above 14.75 with a stop loss at 12.85.
WMS, a utility stock, has formed an inside day right below the 200DMA. Yesterday's up day was on very high volume so today's action would be a clue for further upside in the near future. Good above 36 with a stop loss at 34.20.
DIS has formed a very nice looking base on the 65m timeframe. In terms of relative strength, DIS has been relatively weak and beat up. Regardless, this could be a good long above 108.
