NWF
- First time doing a written analysis on NWF
- Overall price action before mid-June isn’t attractive -> can signal to a lack of interest in the stock
- Low average volume -> Below 300k
- Low volatility uptrend with almost no pullbacks -> calm waters doesn’t mean there aren’t any crocodiles in them
Pros
- Since 2021, stock respects the moving averages
- Quiet uptrend -> usually signals a short-term uptrend
Cons
- I’m not comfortable with penny stocks (less than 50 cents in my book)
- Low daily average volume -> Price can move up/down suddenly if there is a huge purchase/selloff
Summary
- Yesterday’s retracement got me excited to see whether a successful rebound will happen
- Today’s gap down and crash below the two previously respected moving average supports is too drastic. Almost as if the supports didn’t exist
- In hindsight, the quiet uptrend looks like investors getting excited about the corporate action
- Strategy-to-buy (DYOR) – Suggest waiting for a series of Higher Highs (HHs) and Higher Lows (HLs)
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Text me if you have any questions for me.
- First time doing a written analysis on NWF
- Overall price action before mid-June isn’t attractive -> can signal to a lack of interest in the stock
- Low average volume -> Below 300k
- Low volatility uptrend with almost no pullbacks -> calm waters doesn’t mean there aren’t any crocodiles in them
Pros
- Since 2021, stock respects the moving averages
- Quiet uptrend -> usually signals a short-term uptrend
Cons
- I’m not comfortable with penny stocks (less than 50 cents in my book)
- Low daily average volume -> Price can move up/down suddenly if there is a huge purchase/selloff
Summary
- Yesterday’s retracement got me excited to see whether a successful rebound will happen
- Today’s gap down and crash below the two previously respected moving average supports is too drastic. Almost as if the supports didn’t exist
- In hindsight, the quiet uptrend looks like investors getting excited about the corporate action
- Strategy-to-buy (DYOR) – Suggest waiting for a series of Higher Highs (HHs) and Higher Lows (HLs)
-----
Text me if you have any questions for me.