Weyerhaeuser Company : Upper limit of a bullish channel as target
May 10, 2013 at 07:01 pm IST
By
Entry price | Target | Stop-loss | Potential |
---|
US$31.81 |
US$0 |
US$29.8 |
-100% |
---|
Weyerhaeuser Company could reach the upper limit of a bullish channel in the short term.
From a fundamental viewpoint, despite a high valuation, analysts polled by Thomson Reuters have regularly revised upward the earning per share estimates. Consequently, profitability is improving, showing a relatively good financial health of the company.
Technically, the share has a bullish configuration on all time scales. Prices are supported by increasing moving averages as shown by the 20-period, in weekly data, and enclose the stock in a dynamic upward trend.
Taking into account all these elements, investors could buy the stock at the current price. The target price is set above the USD 34.9 mid-term resistance. A stop loss will be fixed below the USD 30.3 short term support, threshold that would invalidate the strategy.
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