Technicals | Apr 21 2010
By Rudi Filapek-Vandyck
Some stockbrokers have turned more positive on Westfield ((WDC)) as expectations grow the US consumer might return faster than most experts would have dared to hope for, but the TechWizard cannot get too excited about the stock.
He notes the shares have remained in a trading range between $11.60 and $12.75 since October last year, with the shares effectively moving side-ways for about six months now.
The Wizard suggests that unless Westfield shares manage to break out of this range on a weekly closing basis, the shares are going nowhere fast. He's not particularly excited about Westfield's outlook, he says.
To trade the shares he suggests investors should watch the stochastic indicator. In the past, recalls the Wizard, whenever the stochastic crossed and turned down this caused price action to head lower to the lower band at $11.60.
Might be an idea to wait for another cross over of the blue and red line, suggests the Wizard. If this happens, this might indicate this rally is over and a new short term fall is due.
The TechWizard reports he currently does not own shares in the company.
