Bought a few Put Options for West Fraser Timber Co.NYSE:WFG Shorting Wood Products. (Note for self).
WFG trade ideas
Evidence for a decline in US housing.... To understand Housing we need to study lumber.
It is highly correlated to the US Housing Market...as the majority of homes are wood frame in the US.
West Fraser Timber Co. (WFG) is the top Lumber producing company in the United States.
WFG could see a crash in stock price anywhere from
-17% -37%📉👇
Target 130....... Good Up Trend.. Technical and fundamental good Breakout in 88.........Target 130....... Good Up Trend.. Technical and fundamental good.........
West Fraser Timber WFGThe reward to risk here to first PT is excellent at 3.98. On the weekly, this is looking quite good for a short.
Target 124.5, ( 1 to 5 months )Good Technical and Fundamental , Buy for long, Target 124.5 , Duration 1 to 5 months.
$WFG 8 Months Base Adding $WFG to my secondary watchlist. big 8 months base (zoom out) with nice VCP pattern.
Building a pivot on the right side now.
*vol drying up in the pivot
*My base detection indicator is on
*OBV making new high before price (NHBP) = nice volume pattern
WFG share price needs to correct to match lumber price crashKey points:
1. Lumber is down 68%, WFG is only down 25%. WFG rallied with lumber. Lumber will likely stabilize at or below the current price.
2. Momentum channel has been broken
3. MACD has crossed below zero and the signal line has crossed the MACD line
4. Chart colorization is a reflection of MACD crossovers
5. WFG is technically in a bear market at a greater than 20% drop
6. The green line on the price chart is a long-term peak trendline that was rejected off of twice
I will begin a short position Monday 7/19 and will add every day that a new low is made, price target 50, will begin covering in that range.
WFG - Stan Weinstien early stage two Stan Weinstein wrote a classic investment book in the 1980's
Basically, it's based on recognising the rotation in the market between stage 1,2 3 and 4 - instead of inserting loads of waffle about it check out this link - the7circles.uk
So going by Stan’s rules in relation to this stock I get:
1. General Market shows an uptrend.
2. The present best performing weekly groups are Technology Services, Electronic Technology and Non-Energy Materials – GGB is in Non-Energy Materials
3. Yep, got a list and will post the best as they come up to near stage 2
4. This stock has no overhead resistance nearby; it has poked at the present resistance at 76 and has now poked through this resistance level. Support is around 60.
5. Mansfield Relative Strength – relative to the S&P 500 the share price has shown better strength than the market. The sector has also shown relative strength to the market too.
6. Volume has more than double in recent weeks.
7. I have a limit order for 82.5 with a stop at 71.5, at half my proposed position.
8. TBC
9. TBC
This is the second stock filling stans requirements I have found. Last one is here GGB-Stan-Weinstien-early-stage-two/
