The new Trade Of The Week is Western Union (ticker WU). Not the fastest mover in the world, but the chart pattern and location fit our swing trade long criteria. It is within reason to see this stock test the low $25 area over the next few weeks.
Slow, But It Can Go!
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Western Union (ticker WU) is not a wild tech stock like SQ or TSLA, but it is showing a bullish setup for a swing trade long.
As Andrew mentioned on the podcast, he wasn’t a fan of the fundamentals, but as a short term oriented swing trader, we are only interested in chart patterns, price action and momentum which have nothing to do with a company’s fundamentals.
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Here is the trade idea:
WU (Western Union)
Buy STOP: 22.25
Stop Loss: 21.00
Target 1: 23.25
Target 2: 24.25
Target 3: 25.25
Price action has established a minor double bottom formation off the 21 area. This area also happens to be a broader inflection point that goes back a number of months which increases the probability of bullish price activity in this location.
A break of 22.25 will confirm the minor double bottom and put this swing trade into play.
Keep in mind, this one is a SLOW mover. It can take as long as a month for it to realize its profit targets.
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