Timmmberrr!
Dragonfly Capital | Oct 10, 2012 05:05AM ET
Timmmberrr!!! – That is what I heard all day Tuesday in the broad market, calls for a pullback. And it got me thinking. What about timber, or lumber? Turns out Weyerhauser, (WY) has great looking stock chart on multiple time frames, and pays a 2.3% dividend, take a look. Weyerhauser (WY) Daily
The daily chart above shows the long run higher from the May 17 low to the Shooting Star top on September 14th. Since then it has pulled back to the 23.6% Fibonacci retracement level and is building a symmetrical triangle. The break of the triangle would look for a $1.50 move and to the upside would then also trigger a Measured Move higher to 30 based on a comparable move from the July consolidation area up to the triangle.
The rising 20 day Simple Moving Average (SMA) is also acting as support and has been important that way throughout the run higher. The squeezing Bollinger bands give the timing at nearby and the Relative Strength Index (RSI) holding bullish makes the bias to the upside.
Weyerhauser (WY) Weekly
Wow that was a technicians dream with all those indicators, but it all boils down to a move over 26.85 leading to a target of 30. Moving out to the weekly chart shows that on a longer scale it is moving up towards the price objective of the Inverse Head and Shoulders pattern, of at least 29.25, as well. Another check mark on the plus side. So yes, Timmmberrr! Put it on you radar.
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Original post
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