WWE: At A Crossroads
Syncubate | Sep 15, 2014 01:32AM ET
When we first a recap in early August. At that point, WWE had crossed decidedly above $12 a share and we pointed out that the $14 level would likely be an approaching resistance area.
Since July, WWE is now up over $3 a share, nearly a 30% increase in value in less than three months, closing last Friday's session at $15.19.
The stock went as high as $15.88 last week, before pulling back. As evident from the weekly chart below, the $16 level is likely to be a ceiling of resistance for the bulls moving forward.
Looking back to the Summer of 2010, the $16 region on the chart has historically been a difficult one for the bulls to overcome and hold above.
In early January of this year, when the $16 level was convincingly cleared by the bulls, we witnessed WWE's epic rise in price, as the stock went on to double in value by mid-March, going to as high as $31.98 a share. With this doubling in value, WWE's Chairman and CEO, Vince McMahon, became a prove the viability of its WWE Network in the long run - on a fundamental level, this is what investors on the sidelines are waiting to see.
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