A 500% move for Weight Watchers in the weeks ahead?Penny stocks are excellent fun during market volatility, they move as fast as crypto charts. Thusly chart patterns reveal themselves with pace.
On the above 2 day chart price action has corrected 90% since October and even more so since Oprah Winfrey decided it was time to exit. Now is an excellent long trade. Why?
1) Price action and RSI and MFI resistance breakouts.
2) High positive divergence. Price action prints lower lows with each successful higher low in RSI and MFI. 7 oscillators print positive divergence. This is equal to the bearish divergence print from last October. The divergence indicator is powerful once the correct settings are used.
3) The falling wedge/pennant breakout. The forecast for this trade is almost 500% as measured from the yellow arrows. If you’re interested in Technical Analysis, this is how you measure such a breakout.
4) Zero stock splits!
5) Short interest is unbelievable. Who holds a short contract after a 90% correction? Funds do, that’s who.
Short Interest Float 19.49 %
Off-Exchange Short Volume Ratio 62.05 %
source: fintel.io
Gamestop had a similar short interest size before it mooned. Don’t take my word for it, look it up.
Is it possible price action corrects further? Sure.
Is it probable? No.
Ww
Type: Trade
Risk: <=1%
Timeframe: You decide
Return: 400-500%
