We have broken decisively above the 50 day moving average on good volume.
There will probably be some temporary resistance just above current levels as we approach the 200 day ma. But the key word is temporary. Once through the 200 day, we will get solid price support. With good fundamental news (earnings and favorable SC announcements) we could see $5-$6 as early as February. JMHO.
Would appreciate viewpoints of other WEX investors.
If one was buying purely on the technicals, it is too early to make a positive call. Essentially, in this case it is a matter of waiting and seeing if management is able to pull off the repositioning of the company sufficiently to overcome the Select Comfort change and whether the movement into medical instrumentation and their other proprietary areas will pick up enough wind to keep the sails full. I have commented in the past on the fundamentals of the stock and don't wish to repeat myself.
However in response to your question on the techicals, looking at the daily chart:
1. The CMF is negative and had been for most of the time since July.
2. The OBV and Acc/Dist indicators are as flat as a pancake and don�t indicate that anything has changed of late.
3. There is no significant trending to speak of so reference to the DMA's and EMA's are not particularly helpful and can give rise to false signals. For instance the MACD histogram has just crossed positive but with no discernible trend and a negative CMF, that would tend to be a false signal.
4. Basically most of the technicals, the chart and the volume are flat-lining.
5. The only indicator which portends anything positive to my mind is the uptick in the slow stochs which accompanied the modest price movement over the last 4 days. But that too could merely be moving into a position of equilibrium pending an external factor.
The weekly chart is even more depressing. Again there is nothing upon which one could reasonable place any positive spin. The only comment I suppose, is that this stock is at the bottom in the absence of any company specific news.
Overall, IMHO investors are waiting for the next report to see how the company has begun to reposition itself. I remain long in the stock simply because I am speculating and think that possibly management might be smart enough to overcome the Select Comfort matter. The recent new appointment and the 2 contracts of which we have knowledge over the last 6 months give me some hope. But one cannot make an investment on hope alone. I am already long and am content to see what the future holds. Essentially the balance sheet is fine and depending on the earnings revealed could be an excellent launching point for the future. However this is a stock which requires any prospective investor to do his or her own DD and not gain any comfort from the past. It is a company at the crossroads business wise. Lets hope management did not do a Robert Johnson and find that its soul remains with the devil (Select Comfort).
Good luck to all longs. I will remain long for a while.