WTW Weight Watchers Daily Chart; Positive Divergence; Descending Triangle

Keystone continues watching WTW with interest. Weight Watchers is losing value rather than pounds. It experienced the big -30% crash to begin the month. Oprah is a major shareholder. She is losing weight from worrying about the drop in the stock price rather than from the actual Weight Watchers program.

WTW catapulted higher when Oprah initially got involved with the stock. She appeared on commercials and the stock caught a buzz and of course most of the ladies worship at Oprah's altar. If she told them to jump off a bridge they would leap from the rail like lemmings. Therefore, it is logical to assume that Oprah will rally the troops again. Keystone previously mentioned this play but has not entered any trade as yet. A sub 19 entry is wanted and it did not materialize.

However, those jumping in quick a couple weeks ago at that time made a quick +8% as price jumped from 19 to 20.5. Then price retraces lower now at 19.38 remaining a hair above 19. You can see these matching lows occurring and the green lines show universal positive divergence. A bounce would be expected, however, that blue descending triangle is ugly. Also the money flow has lost a bit of mojo. This is a tricky call.

On the weekly chart, the money flow slips to a new low. All the other indicators are positively diverged wanting to see price rally for several weeks. The low in the money flow will want to see a jog move occur, up for a week or so, then back down for another matching or lower low for a week or so and that is likely a firm multi-week bottom.

Price needs to show respect to the middle band at 21.06 so a near-term pop may bounce price there. However, that weekly chart wants to chop for a couple weeks or so. Keystone is going to keep watching with interest. WTW is likely a great buy at 17-19. Oprah is probably filming new commercials right now that will appear on television soon to pump the stock higher. It is fun to watch. Keystone wants to buy in the 17-19 range but may wait two weeks regardless when that money flow on the weekly chart will be set up with possie d. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.