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News Breaks
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February 9, 2010
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| 13:47 EDT |  | WYN |
| theflyonthewall.com: | Wyndham: Earnings release technical preview, gap risk, float-skewed short | | BULLISH CASE: On better than expected news/outlook the stock could trade to the upper limit of the very short-term bullish price channel at $21.49. On a bullish breakout above the price channel the following resistance levels would become upside objectives: $21.81, $22.19, $22.88, $23.45, $24.10, $25.00, $25.48, $26.20. BEARISH CASE: There is a potential bearish crossing of the 10-day and 50-day moving averages. In some technical trading systems, this is a confirmed long-term sell signal. On worse than expected news/outlook the stock could trade to the lower limit of the price channel at $20.68. On a bearish breakdown below the price channel the following support levels would become downside objectives: $19.89, $19.57, $19.11, $18.50, $18.21, $17.40, $16.64, $16.39, $15.98. NOTE: Moderate short-base in terms of days to cover at 3, but with a large 5.6% of the float short. Traders are positioned more for negative news. Reactions on a surprise, especially a positive one given the float-skew, have a high probability of being extreme in duration and price. High gap risk. :theflyonthewall.com |
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