Potential key reversal top detected for WBT

Level of interest: Prior support/resistance levels in the past of $3.04 (09-Aug-2022) and $3.75 (12-Dec-2022) (key support/resistance areas to observe).

Await signals for entry such as DMI/ADX and/or RSI swing to the bearish direction, and observe market reaction to support/resistance area at $3.04 to confirm.

Stop loss for the trade involving (and indication that this trade is an absolute 'no-go') is any trade above the high of the signal day of 2nd January (i.e.: any trade above $3.80).

Trade active

UPDATE (week ending 10-Jan): Trade activated 6th January upon successful test of support/resistance area of $3.04 to the downside. Traders may have wished to have taken out quick profits the following day on 7th January with quick decline towards prior support areas, but further action later in the week showed respect of the support/resistance area of $3.04 before the share price closed below both 10 and 30 day MA's at the end of the trading week. Charts suggest placing a stop above the support/resistance area of $3.04, or at breakeven at the very least, in order to preserve profits and provide 'wiggle room' for the trade, in case of a snap-back in price. The stop can always be lowered to capture more profits should further support areas fail (i.e. $2.78 from the open of 19th December and $2.68 from the open of 29th November).

Note

UPDATE (week ending 17-Jan): Terrific trade result thus far - charts suggest lowering stop to area above the open of 5th December (i.e.: $2.92) in order to provide 'wiggle room' and protect profits from the trade. For those not willing to give back that much profit in the event of retracement to this area, consideration of closing out a portion of the trade could be worthwhile whilst allowing the rest to run, if concerned about a 'kick back' upwards in share price.

Note

UPDATE (week ending 24-Jan): For those traders still remaining in the trade, consider lowering profitable stop to an area above the recent swing high of $2.72 from the high of 17th January, in the event of a 'kick back' upwards in share price, considering the higher high in RSI that could be about to form on the daily chart. The charts suggest this as a reasonable stop area considering lower highs and lower lows on the daily chart - and no harm to close out the trade for anyone who wishes to for a decent profit.

Note

UPDATE (week ending 31-Jan): For those traders still remaining in the trade, the charts now suggest lowering the profitable stop to just above the high of the gap-down that occurred on Tuesday of this week (i.e.: just above $2.45). Traders should be mindful of prior support/resistance area from the open of $2.12 from 11th October 2024 - watch market reaction around this area as the share price now trades between the new established range of $2.12 and $2.45.

Note

UPDATE (week ending 07-Feb): An uneventful week of share price action for WBT this week, trading within the range described in last week's note. Charts suggest keeping an eye on the DMI/ADX and RSI for any sudden changes and breakout above the top of the gap-down range area of $2.45, which would be a decent area for an exit from the short position should this trade decide not to decline any further.

Note

UPDATE (week ending 14-Feb): New lows formed towards the end of the week for WBT, with the share price closing beneath the 10 and 30 day MA's and successfully testing a potential resistance of $2.33 from the open of 31st January. Thus, the daily chart suggests lowering the profitable stop further to a point above the high of the trading range of this day (i.e.: above $2.36 of the high of 31st January). Of course, any trader happy with an approximately 30% profit over the month would be more than welcome to take profit too - congratulations!

Note

UPDATE (week ending 21-Feb): Share price remains closed below 10 and 30 day MA's at the end of the trading week and within the trading range of $2.12 and $2.33, as discussed over the past couple of weeks. Chart guidance remains the same as per last week's note.

Note

UPDATE (week ending 28-Feb): Share price closed below 10 and 30 day MA's yet again at the end of the trading week, but has now also closed below the trading range of $2.12 and $2.33 that has been recently discussed. Charts are now suggesting lowering profitable stops to a level above the high of the candle from Thursday's FY25 interim financial reporting (i.e.: above $2.22).

Note

UPDATE (week ending 07-Mar): Share price closed below 10 and 30 day MA's yet again at the end of the trading week, with the share price strongly bouncing off the 10 day MA towards the end of the week. Charts are now suggesting lowering profitable stops to a level above a previously established resistance area that has now been established by this bounce (i.e.: above the open of $2.12 from 11th October 2024 - e.g.: $2.16 above the psychological barrier of $2.15).

Note

UPDATE (week ending 14-Mar): Share price closed below 10 and 30 day MA's yet again at the end of the trading week, however the RSI continues to be testing it's average line on the daily chart in attempts to make headway to the positive side. Depending on risk tolerance, the charts suggest lowering profitable stops to a point above the recent swing high of $2.09 from 6th March (a proven area of resistance, as discussed in last week's comment) or above the psychological barrier of $2.00 (which aligns well with the open of 7th March, an untested potential resistance area).

Trade closed: stop reached

UPDATE (week ending 21-Mar): Profitable stop hit on Tuesday 18th March for a terrific return on investment for any trader still in the trade, as suggested by last week's comment. Congratulations on a terrific trade for the short-side - thank you to the market, and all of the best to shareholders.

Ivory_Wolf

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Ivory_Wolf

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