Is it time to buy one of Cramer’s faves…or not? (June 20, 2012)

by DAN WPRT SP-500 
I’m Dan Fitzpatrick at StockMarketMentor.com on Wednesday, June 20th. In this chart analysis here we’re going to look at Westport Innovations ( $WPRT ). Now this is a company that Cramer’s liked for a long time. He liked it on the way up, he liked it on the way down. He basically likes the company. So what are you going to do with the stock? Look, this is pretty much a classic double bottom here. Short term stuff. It’s a “W”, right up there, that completes the “W”. So then we get a pullback and where’s this trading? Right along the fifty day moving average and now where is it? Right up at the two hundred day moving average which was resistance here before. So we’ve got an established pattern here. We’ve got an established pattern where we’ll back up to resistance. I think ultimately Westport ( $WPRT ) moves higher. This is a pretty easy analysis in my view. We’re going to go to a different chart here. The S&P struggling up against resistance this is a key level that the market is dealing with. So when you’re looking at stock like Westport Innovations ( $WPRT ) you have to look at the overall environment in which this stock is trading. It’s an environment where there’s some selling pressure. Just kind of broad based selling pressure, nothing really weird, nothing nutty, just folks distributing stock. Wanting to raise some cash because the Bernak just didn’t butter their biscuit the way they hoped it to. Now they’re wondering what else are we going to do? What’s next that’s going to help us save the free world or at least the not so free world the free for now world? Anyway, so we’re back up at this resistance level here. I wouldn’t buy Westport ( $WPRT ). I wouldn’t buy it even if it breaks out above this level. How much higher is it going to go before it pulls back? Even if it breaks out above this level wouldn’t you think it’s going to pull back at some point to give you a second bite at the apple here? What I’m viewing is this, we’ve got to move higher, a little consolidation, now move right up to resistance and how many days are we in this move? Three days. I would look to buy close to say $30.00. If this thing pulls back to about $30.00 you want to go ahead and buy it because what you’re really taking advantage of is this new uptrend of up trending zigs and zags. Okay, that’s it. Members get over to the Strategy Session. I got some thoughts for you including why trading suddenly became so much easier. I’ll see you there.

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