MEMC Electronic Materials (WRF) is another stock which is on my watchlist. Look at its beautiful weekly chart. I am so very excited on this stock. WFR broke its downward trendline in end Jan 2011 on heavy volume and tested the top resistance of the Ichimoko Clouds before moving down to its support at the base of the clouds. A change of trend is the most lucrative to trade if one has the patience to wait it out. This stock would be a low risk buy on a retest of support.
As the famous great trader Richard Wyckoff would put it, this stock is currently in the midst of backing up to the "creek" after its initial rally. Wyckoff said that it is normal for an advance to be corrected with a reaction to the vicinity of the halfway point of the advance. Since the halfway point is above the creek, the back up is likely to be completed between the halfway point and the top of the creek. Wyckoff also said that we will need the combination of narrow price spreads and low volume on the back up in order to take up a long position. This will serve to be a primary buying opportunity.
Look for a reversal candlestick on the bottom channel of the trendline of daily chart of WFR. Only buy when it rebound... or else....
As the famous great trader Richard Wyckoff would put it, this stock is currently in the midst of backing up to the "creek" after its initial rally. Wyckoff said that it is normal for an advance to be corrected with a reaction to the vicinity of the halfway point of the advance. Since the halfway point is above the creek, the back up is likely to be completed between the halfway point and the top of the creek. Wyckoff also said that we will need the combination of narrow price spreads and low volume on the back up in order to take up a long position. This will serve to be a primary buying opportunity.
Look for a reversal candlestick on the bottom channel of the trendline of daily chart of WFR. Only buy when it rebound... or else....
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