October 31 Chart of the Day - Wayfair
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
Online home goods retailer Wayfair (W) will be announcing earnings results Friday morning before market open.
The company missed analysts’ revenue expectations by 2% last quarter, reporting revenues of $3.12 billion, down 1.7% year on year. It was a disappointing quarter for the company, with a miss of analysts’ buyer estimates and slow revenue growth. It reported 22 million active buyers, flat year on year.
Yada yada yada...
Let's just look at their charts from a price action technical analysis perspective.
We have featured over 300 Charts of the Day since May 2023 and teach Price Action Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that after setting its $369 all time high (ATH) back in 2020 price has fallen dramatically through many potential support levels.
Often it can be said that "less is more" and when looking at this time frame that is spot on. What we mean by "less" is less drawings, less indicators, less signals, etc.
There is only one price action drawing on this chart, a single trend line.
To us, nothing else matters (for now).
Weekly Chart
On the weekly chart we can see with much more clarity the volatile fall from ATHs with price making a series of lower highs and lower lows.
Not good for the buy and hold investor crowd.
We've added more price action drawings but the $16.74 level could be something to hold out for...
Could earnings be the catalyst that pushes price down into that area or could price break back up this time?
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.
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