"Trade what you see not what you think" Bullish SentimentInterest in this market
Strong area of support that broke the 83.00 area, area that broke downtrend in November 22nd touched and created another institutional area above. 1-3 risk to reward whilst still keeping an eye on 85s
Retail Investors are fearful because of the 4th quarter loss sending the stock down into an area of interest
Risk management
Cut losses quickly
Wait till price action breaches more into the level to buy cheaper
0A4A trade ideas
Range BoundAccording to the technicals Wayfair has been range bound for the past year or so. A strictly technical trader would notice the recent consolidation around 38 and likely be thinking prices would rise. However, I do not believe in the business model. Many people like to go into a psychical store before buying furniture, and other already established furniture dealers also have an online presence which is big competition for Wayfair. Combine this with their difficulties posting profits quarter after quarter and I do not see this stock doing well in the long term. Short term we may see a bump back up to 48 or so but long term I would not park my money here
Wayfair W Double Bottom w/Handle BaseWayfair (W) has formed a second stage double bottom with handle base. Volume spiked up the right side of the cup and is drying up in the handle. The stock had a bullish reversal support week the week of February 12, 2016.
While Wayfair is not expected to post positive earnings for at least another two years, it has beaten analyst estimates by 40% or more over the last three quarters, and sales growth has accelerated over the past four quarters from 39% to 81%. NYSE:W