Stock Chart Analysis WAT
Waters Corporation(Public, NYSE:WAT)
On nights like tonight, most of the charts I find look fantastic, if you are already in. Most are too extended for a reasonable swing entry unless you drill down to intra-day charts and aggressively trade them. It's very important to analysis your risk first, and then worry about the reward. Many stocks look like they could easily tack on more gains, but the with the rise today, a reasonable stop may be too far away. However, there are still some charts that allow for a reasonable stop and could present opportunities if the markets follow through over the next few days. One such chart I ran across tonight was WAT.
WAT cleared a pretty long and choppy base in late April on heavy volume. While the base left much to be desired, WAT has been consolidating nicely since the breakout. It never came close to retracing into the breakway gap, and has been trading in a tight and narrow range for a few weeks. It closed back above the 200-day moving average today, and has found good support on the last two trips to the $43 area. The Bollinger Bands have shrunk to the narrowest range on the chart and WAT could see a nice expansion in volatility soon. While the breakout could move in either direction, I am leaning to an upside breakout due to the bullish factors noted above.
Good Trading,
Joey
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