WTW Weight Watchers Weekly Chart; Oprah's Baby; Positive Divergence Developing

There are three things that are certain in life; death, taxes and the ladies worshiping at Oprah's altar. WTW exploded higher when Oprah bot a stake in Weight Watchers and began hawking it on television in early 2017; a parabolic move in stock price followed. Oprah creates buying power in her products, services, media offerings and even stock prices. Oprah lays the golden eggs, however, after the top last summer, that egg she laid is not gold.

WTW runs from 10 to a hundo in only 1-1/2 year; a 10-bagger. That will buy a lot of bon-bon's and chocolate doughnuts. They should call the stock WOW. Oprah was pumping Weight watchers in television ads. They would wrap her limbs in cellophane and squeeze her into a black leotard; always black or vertical stripes to hide the fat. The women loved it and WTW profits soar. It doesn't matter that the pounds lost are minimal, the name-branding of Oprah attracts hoards of buyers.

Alas, all good things come to an end and the stock peaked with the rising wedge, overbot conditions and neggie d across the indicators (red lines and arrow). Only a fool that did not look at the chart was holding that stock last spring and summer. So down she goes. Oprah made a booboo. The Einstein's changed the name of Weight Watchers to WW. Obviously, they want to branch out in other areas, products and services so they needed a more generic name. With the Weight Watchers moniker, it is a given that the only thing you do is watch people's weight. The WW name change has exacerbated the move lower in stock price. Everyone recognized the Weight Watchers brand but now when you say "WW" people say, "Who?"

Price violated the lower standard deviation band in late October and has needed to show respect to the middle band, now at 39 and dropping, for 5 months. Price tried to find support at the 200-week MA but that failed after a 3-week stutter-step. The stock is falling down through the downward-sloping channel. WTW then tumbles into the blue circle. Those are the stockholders holding on for the earnings report hoping and praying, praying and hoping for the stock price to rally. Their heads were lopped-off and served on a platter.

Interestingly, the chart was set up beautifully with positive divergence across all indicators right before the earnings. It was ready to bounce higher. The earnings, however, crashed the stock -30%. That is the two big red candlesticks taking it to the present price at 19.44. When a chart is set up that nice for a bounce, the only thing that can scuttle the pop is bad company news and this includes earnings reports. Before placing any trade, check and make sure you are aware of when the company releases earnings. For WTW, despite the nice set-up a week or so ago, the trade would not have been placed on the long side due to the imminent earnings release, especially for a company like this. They do not make widgets but instead they try to eliminate fat from client's bodies a more esoteric endeavor. Earnings releases can be a crap-shoot.

The purple line shows important price support from 2017 at the 18.2-18.3-ish level. What is so fascinating about a potential long play in WTW is that Oprah is involved. You know that she is going to be shoe-horned into black spandex and shown jogging or bicycling in television ads to save this flailing stock. Hopefully, she does not injure herself due to carrying all that weight. But once Oprah starts the hype machine, there may be a repeat of the 2017 parabolic move obviously not as dramatic but perhaps a nice +10% or +20% pop off the bottom. These are the things speculator's think about.

This weekend, Oprah may be on television commercials trying to save the brand. The chart is set up with positive divergence except for the RSI and MACD. Typically, you want to give a ticker lots of time after such a bloodbath and it would be a no-touch but since Oprah is in this stock, that is a horse of a different color. For those willing to take an elevated risk, WTW can be bot now. Oprah may begin her Weight Watchers cheerleading campaign at any time.

However, the chart likely needs a jog move to position the RSI and MACD with possie d. This would be up one week, then down the next for another matching or lower low. At that time, price may want to kiss that 18.3-ish area. So if you buy now, WTW may still retreat a buck. Chances are however, Oprah is going to be prancy-ing her plumpness across television screens touting how healthy Weight Watchers will make you, so this may be the catalyst to ignite the possie d rocket fuel. Keystone does not own WTW but is tempted to buy it now or next week or perhaps both.

The WTW daily chart shows price coming down with indicators positively-sloped. When price prints the lower low that will be possie d and it will be ready to rally. Ditto on the 2-hour chart. At sub-19, which may occur today, Keystone will buy it and see what happens. Oprah, start squeezing yourself into something that makes you look skinny and shake that money-maker to pump the WTW stock price higher. 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.

Note Added at 2:21 PM: WTW did not fall as expected at the open and did not print sub-19. Considering the weakness in the stock  market, this was surprising. Then, price rocket-launched higher. Many traders likely have the same idea as above and are waiting for Oprah to bounce her pom-pom's as she sashays across the television screen hyping Weight Watchers commercials. Keystone is watching it and wants sub-19. WTW may take off higher without him. Keystone will likely buy it next week (or today if it flushes lower into the bell). WTW is at 19.58 with a HOD at 19.98, call it 20, and a LOD at 19.10.