A Different (but Similar) Take on $WNC


Recently there has been a lot of chatter and interest in Wabash National (aka WNC) around the nations of iBankCoin.  I recall trading this stock back in 2009 to the tune of a +180% gain and was intrigued by the idea of this coming back around for another opportunity.

With the excessive bullishness coming from people who are much smarter than I in these matters, it only made sense to take to my favorite analysis tool (Price by Volume) and see what would come of it.

Here is the weekly:

From my measurements, there is clearly a dearth of volume in the region from 12.25 all the way to 24.

However, before we get there, lets take a look at this from a price-resistance standpoint.  There could potentially be a couple of bumps in the road before we enter the void.  The first comes in the region between 10.8 and 11.7, which triggered reversals in 2008, 2010 (in the weeks after the flash crash) and also in 2012 (Green Arrows).  All three of those took place after steep run-ups (similar to what we are seeing now).

If price can constructively clear this region, all that stands between this stock and the “ether” is the reversal that took place in late 2010/early 2011 around 12.5 (Red arrow).

Past that…there is nothing other than a bump at 17 and some chop around 20 (pink arrows).

My friends, the call is this: through 12.5 and we best prepare our space helmets.


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