I have always preferred the real battles of boxing over the staged acting that is WWE. Nevertheless, it is hard to not look at that firm’s stock when it has been beaten-down this badly. Long-time readers of mine know that stocks in downtrends can go much lower than seems fair or possible. It happens all the time, which is all the more reason to embrace sound risk management principles and have a clear exit strategy in place before you enter the trade. Beyond that, with regards to swing trading I am constantly pushing myself and members inside 12631 to find the best of the best technical setups.
At the same time, assessing potential opportunities is still important. In the case of WWE, you are talking about a stock with a 5.58% dividend yield, coupled with a strong balance sheet (current ratio well above 3). As you can see on the monthly chart below, WWE is back to its all-time lows of the 2002-2003 bear market bottom. After an established, multi-year downtrend, the stock printed a monthly inverted hammer candlestick in May (or inverted “umbrella,” if you will, due to the lack of a head on the hammer), which can signal a potential reversal in trend.
After a few dojis, WWE has had a strong August and could be confirming that candle to the upside. I like this as a long-term idea up to at least $10.50-$12 with a stop-loss below $7.50. The dividend does not hurt either.
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… all I can say is …
Did the chart inspire the song selection ?
or …
Did the song inspire the chart selection ?
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Great muse, chess !!!
Most enjoyable !!!
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“When you are a man, sometimes you wear stretchy pants in your room. It’s for fun.”
The 5% divi for WWE has always been tempting, but too hard to take the business seriously. Good chart analysis. Now get your stretchy pants on!