Here’s a look at Weatherford ($WFRD) – September 18, 2023
This is Dan Fitzpatrick with Fitz In Five. Today I want to look at Weatherford ( NASDAQ: WFRD ).
This is one that we put on our Active Trade List back here, and the stock is working just fine. You will notice the stock popped way up here on the 5th. That was on the announcement that the stock was being added to the Mid-Cap Index.
It kind of did a gap and crap, kind of like NVIDIA ( NASDAQ: NVDA ) did back here, right? But then ( NASDAQ: WFRD ). it quickly recovered. And then just like a week later, the following Monday, it actually moved back above that.
When a stock does this, when it jumps up there and pulls back and then ultimately recovers the entire box of selling here, that’s a really bullish selling sign. Because it reveals, not here, not here, not here, not here, but here, it reveals that this selling pressure, this supply that pushed the stock down, it is actually limited.
In other words, all the supply, as buyers pushed up here, all the supply got eaten through and there is still enough demand to push the stock higher. And so what this tells us is, there are institutions that are still buying this stock after this big pop and drop.
I still like this stock, we’ve got our stop at 89.95, and I want to leave it there just because you have to expect these little oscillations in a stock. But when the trend is like this, you don’t want to be looking at this stock, you don’t want to be looking at this chart and say, Do you know what? This is the top right there, I have got to sell this thing right now.
Don’t do that because you will wind up missing out on some pretty good gains. I would say, track the 50-day moving average, that’s a 10-week moving average. And as long as the stock stays above there, then I think you are still good to own this stock.
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