| Technical Analysis by EarthMonkey WIN Energy (WNR.v) |
Daily Chart for WNR.V: Friday 25th May 2007
The daily chart shows WNR searching for a bottom as indicated by the huge positive divergence between the
price lows and MACD line that has been ongoing for six months now. Over this period, WNR has been trading in
an ongoing negative channel, but has now broken out of this channel and has been trading sideways. Given the
sideways trading, it’s likely that the price bottoms may have been reached, particularly given the higher lows as
the stock price moved out of the channel. However, trading volume is still thin so nothings guaranteed at this
stage. A volume spike or two and a continuation of the up move may be necessary to confirm the price bottom.
This is as good a point as any to start accumulating in anticipation of a recovery. Given a strong move up,
resistance would initially be expected at the $0.55c level (where the stock gapped down back in March) and then
at around $1.10 - $1.20 where there was substantial purchasing before the stock price tanked.
price lows and MACD line that has been ongoing for six months now. Over this period, WNR has been trading in
an ongoing negative channel, but has now broken out of this channel and has been trading sideways. Given the
sideways trading, it’s likely that the price bottoms may have been reached, particularly given the higher lows as
the stock price moved out of the channel. However, trading volume is still thin so nothings guaranteed at this
stage. A volume spike or two and a continuation of the up move may be necessary to confirm the price bottom.
This is as good a point as any to start accumulating in anticipation of a recovery. Given a strong move up,
resistance would initially be expected at the $0.55c level (where the stock gapped down back in March) and then
at around $1.10 - $1.20 where there was substantial purchasing before the stock price tanked.
Weekly Chart for WNR.V: Friday 25th May 2007
The weekly chart is a very positive one, with WNR trading away from its down trendline and moving sideways .
MACD, CCI, StochRSI all had crossovers indicating that the downtrend may be over. Note that the week of Apr 30
has a positive volume along with a bullish candle stick. OBV appears to start changing direction (away from
negative) in the same week. All these positive TA signals indicate that heavy selling may be over and a bottom
may now be in place. I would remain long in this stock and would wait for more confirming signals over the next
few days/weeks before purchasing more. However, crossovers on weekly charts are generally reliable indicators
and at this point an initial entry position would be warranted based on the chart.
MACD, CCI, StochRSI all had crossovers indicating that the downtrend may be over. Note that the week of Apr 30
has a positive volume along with a bullish candle stick. OBV appears to start changing direction (away from
negative) in the same week. All these positive TA signals indicate that heavy selling may be over and a bottom
may now be in place. I would remain long in this stock and would wait for more confirming signals over the next
few days/weeks before purchasing more. However, crossovers on weekly charts are generally reliable indicators
and at this point an initial entry position would be warranted based on the chart.