Westell Technologies is demonstrating some amazing breakout technical signals. The top chart is a weekly chart for WSTL with 6 bullish technical signals marked. The second chart is a regular daily chart.
The 6 signals are as follows:
1. WSTL recently broke a significant resistance at 2, leaving no overhead resistance on this three year charts. This means that the stock is "lighter" now and can rise with less effort.
2. The relative strength index shows that the RSI has remained in positive territory since July 2009 and more recently it has started to rise. This signal confirms that the stock's performance is "solid" when compared to the market, and the gradual uptrend signals that the stock will most probably continue this trend in the near future.
3. This is one of the most important signals. It can clearly be seen that on the recent weeks of breakout the stock traded on incredibly high levels of volume(more than 3 times the average of past several weeks). This indicates rising public interest in the stock and clearly shows that the stock has a lot of "fuel" in its tanks and is ready for a rise.
4. A recent cross over of the 50 week and 200 week MA indicates the stock has entered a bullish phase.
5. MACD crossover confirms that the stock is in a bullish uptrend.
6. Here can be seen a classical cup and handle formation this is a very bullish indicator.
(Apart from these major signals: the stock's sector i.e. "Technology" is also currently bullish. )
I would recommend adding positions as soon as possible. This stock is a 6 month to 1 year hold and may rise to 7 - 10 per share in 2011 giving a 50% to 100% profit.
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hmm i agree with your analysis...but in the short term i think its going to dip a little bit.
ReplyDeleteIt might make a correction after the recent bullish run, but for a 6 month to 12 month period the probabilities of rising are very high.
ReplyDeleteAlso, we never know if it will dip or not. Its possible that this stock may keep on rising.
So I would buy half of my position right here and if there is a correction I will by the other half later: just so that I don't miss any bullish runs.