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Wayfair's Cup-And-Handle Pattern Higher

Published 11/03/2015, 03:41 PM

Wayfair (N:W) the catalog and mail order house, is making some waves. Not necessarily in its catalog business. But in its stock price. So grab a cup of coffee or tea and lets peruse the information in its stock price.

The chart below shows a spike to an all-time-high price in August. It quickly sold off from there back below the prior consolidation zone and made a low at 32.50 in September. Since that low it has moved higher again, peaking at 46 before a short pullback. The last two days has seen the price rise back to that 46 level Tuesday.

Wayfair, Inc.

All this creates a Cup-and-Handle pattern and the movement Tuesday gives it the trigger. The target out of the pattern is to a price of 59.50, which would be a new all-time high. It has plenty of fuel to get there fast with short interest at over 30%. And it has momentum on its side. The RSI is rising and bullish while the MACD is about to cross up and is positive. Use the bottom of the Handle as a stop and enjoy the ride higher.

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