Markets dropped very late Wednesday after a 2 day surge as both the Nasdaq and S&P 500 closed lower by .4 and .2% and finding support near their 50 day SMAs, a respectable showing given Monday and Tuesday’s fireworks. Some noteworthy stocks reported earnings Wednesday and WHR was one of the more impressive. We looked at this name in our opening paragraph in our 10/30/14 Game Plan (chart how it was presented that day below) and thought it could be on the verge on a long term breakout as it took out a long one year ascending triangle pattern on 10/23, just days before a very well received earnings report on 10/28/14 which advanced 6.8%. Todays gain of 7% was its 3rd consecutive up move as it rose 1.4% on 7/23/14 reversing more than 10 handles off its intraday low. People may not know but it happens to be the 8th largest component in the homebuilder ETF XHB which is having a wonderful week up 4% thus far. To be balanced there were disappointments as well. RL perhaps may not have come as such a surprise as it had fallen 7 of the previous 8 weeks and today slumped 18% to the 140 level, where it may potentially find some support there as “looking left” on the chart would show the round 140 figure was comfortable support dating back to the weeks ending 5/18-8/3/12. In fact the 6 weeks between 6/29-8/3/12 all traded intraweek below 140 but all managed to CLOSE above.
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