"WLT: Bottom Feeder Explained on Multiple Frames"

Walter Energy is by no means a leader in this market. However, there may be an opportunity none the less.  I've been watching the $57 area serve as major support that has been tested many times.  Given that everyone has unique time frames and risk tolerances, I thought it would be reasonable to simply point out what I am looking at.

The weekly time frame illustrates a potential slowing in the severity of the downtrend in relation to the 20 period moving average below.

On the daily frame recent action provides further evidence for $57 being firm support in the name. The wide range bar on 03/09 demonstrates institutional interest on 145% of average daily volume. The wide range day was followed by a constructive consolidation and navigation of the 10 day moving average. Friday's action caught my attention with solid relative strength on increasing volume, as it began to breakout of the flagging pattern.

I will be watching to see if we can crack the 20 period moving average and the $63 level overhead next week for a potential entry.


Never forget to make every trade your own.