December 18 Chart of the Day - Worthington Enterprises
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Worthington Enterprises, Inc. (WOR) operates as an industrial manufacturing company. It operates through two segments, Consumer Products and Building Products.
The company's stock jumped over 15% today on surprise earnings but was this a premature lift off?
We'll take a deeper look from a price action technical analysis perspective.
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Monthly Chart
On the monthly chart we can see that after setting its $69.96 all time high (ATH) about a year ago price fell dramatically since then flirting with a technical line in the sand support area in the $37-$40 area multiple times.
This is a very important technical level on the monthly chart for us and potentially may serve as a hypothetical bull/bear line.
Investors and traders could anticipate this level to continue serving as somewhat of a price magnet from a higher time frame perspective.
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the relentless and wild price swings both up and down.
On the way down price has consistently made lower highs and lower lows.
Trading around $43.50 earlier today price may be attempting to break back to the upside without first visiting a potential demand zone just a little further down.
A demand zone is another one of the five price action tools we teach. It's a price area on a chart where previously there was a high demand for the underlying asset based on historical price action in and around the same area where buyers could be prepared to purchase at different levels within the zone. A demand zone is present within the light gray rectangle and has a high buying potential.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
