Stock Chart WNR

Posted by downtowntrader | 5/06/2009 03:19:00 PM View Comments

Stock Chart Analysis WNR

Western Refining, Inc.(Public, NYSE:WNR)

I was alerted to WNR today on my "Stocks with Mojo" scan from Trade-Ideas. While I typically use these alerts for day-trades, I've found great swing trade candidates from this filter. I really like the price action in this chart, although there are a few divergences on it. Overall, WNR looks like it is clearing a Cup and Handle base on strong volume. The "handle" took on the form of a triangle with the bottom of the pattern roughly following the 50-day moving average. WNR gapped above the base today and the volume accompanying the breakout is very strong. While the price pattern looks pretty good, there are some divergences in RSI and MACD. Both have failed to hit new highs with price, but these divergences sometimes clear themselves up as price follows through. If WNR makes a decent run here, I presume RSI and MACD will be pulled to new highs. For now the breakout looks valid and the question is will WNR provide a decent entry?

Good Trading,


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