WU trade ideas
the b[AI]te's weekly insights -- WU 2021-02-15center stage attention
stock
our system found that WU received most attention over the course of last week.
comment image
we see a moderate negative correlation with our image indicator. We therefore assume that prices are driven partial emotionally as there is probably some other catalyst with regard to the company resulting in an uncertain pricing.
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FAQ
ATTENTION
our algorithms define ATTENTION as the overall number of stories and opinions that appear for a given security each day.
IMAGE
our algorithms define IMAGE as the averaged sentiment value extracted from all opinions received for a given security per day.
WESTERN UNION COMPANY Strategy DailyHello traders, WESTERN UNION COMPANY is in a dynamic fake bearish with an abnormal sell volume traded and an upside down hammer shape. In the TIMEFRAME M1 we see a refusal from the sellers followed by a panic, it is going to breakout from the bottom a consolidation zone. Then go off on its last low point and make a big reversal likely to breakout the price. And from this directed towards the VWAP to test it then break it in force and go to the top of the consolidation zone to test it. It can breakout for arrival in a new area and go to the next high after the Daily one. And if the buyers are of returns take excess of TIMEFRAME H1. Not enough power to go and test half of an intermediate median on ANDREWS PICHTFORCK.
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Western Union $WU is ready to break outIt is about to break out $20.9. Yesterday's volume was well and if it holds above the buy point, the target will be $23.58
12 months Consensus Price Target: $21.75
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GLOBAL FINANCIAL ENGINEERING SWING TRADING STRATEGY FOR WUOur Proprietary Trading System indicates the following:
The Primary Trend (PT) given by the Global Monthly TIME BAR (GMTB) is currently Bullish
The Secondary Trend (ST), given by the Global Weekly TIME BAR (GWTB) is currently Bullish
The Medium Term Trend (MTT), given by the Global Daily TIME BAR (GDTB) is currently Bullish
The Short Term Trend (STT), given by the Global Four Hour TIME BAR (GFHTB) is currently Bullish
In light of the above trend analysis we will execute a bullish trade on Western Union
Global Entry Signal For Trade #1: Buy @ $20.35
Global Trailing Stop Loss Trade #1: @ $18.88
Global Target Profit Trade #1 : @ $35.00
Global Trade Management Strategy: We applied the Global Trailing Stop System for Global Trading Strategy #3.
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The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security.
To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice.
To the extent that it includes references to specific securities, commodities , currencies, or other instruments, those references do not constitute a recommendation by Global Financial Engineering,Inc. to buy, sell or hold such investments.
This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers.
Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
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WU Approaching Support, Potential Bounce!WU is approaching our first support at 16.08 (horizontal swing low support, 78.6%, 61.8% fibonacci retracement, 100% fibonacci extension) where a strong bounce occur above this level pushing price up to our major resistance at 17.60 (horizontal pullback resistance, 23.6% fiboancci retracement).
Stochastic (55,5,3) is also approaching support and seeing a bullish divergence where we might see a corresponding bounce in price.
WU approaching support, potential bounce! WU is approaching our first support at 16.08 (horizontal swing low support, 61.8% Fibonacci retracement, 100% Fibonacci extension) and a strong bounce might occur above this level pushing price up to our major resistance at 19.16 (horizontal swing high resistance, 50% Fibonacci retracement, 100% Fibonacci extension).
Stochastic (55,5,3) is also approaching support and we might see a corresponding bounce in price.
Western Union Co. LONGLong @ $20.02
Market Cap - $9.31B
Beta - 1.02
P/CF - 5.90
Earnings Yield - 9.26%
Current Ratio - 0.84
- Western Union is expecting to benefit from the tax rate, they revised their outlook for tax rate and earnings per share. Earnings per share are forecasted in the range of $1.80 and $1.90 (previously was $1.78-$1.90). They also expect revenues to grow from 1-5% on a constant currency and GAAP basis, operating margin of 20% and an effective tax rate of around 14% and adjusted tax rate of 15%.
- WU has a large focus on enhancing shareholders' value - they try to achieve this by dividend payments and share buybacks. In February their quarterly dividend was increased by 9% and there dividend yield remains 3.1% above the industry average at 0.7%.
- WU has a massive return on equity at 698% which sits much higher than the industry's 38.5%, showing that WU has a great system using shareholders funds. Their return on equity has grown steadily over the past few years and we expect for it to continue.
- Worldwide immigration has been undergoing healthy growth and as Western Union's key business is C2C it will remain to grow if immigration continues to grow globally.
- We also expect technology investment to pay off and to improve margins.
- Western Union is currently range bound in a symmetrical triangle which it has been in for quite some time, this is why the shares have only gained 5.84% against the industry's 12.4%. The equity being so behind the industry in forward P/E and share price growth YTD provides an attractive opportunity.
NeroTree Capital rates Western Union as a BUY with a price target of $24.