WLT Walter Energy long opportunity 5/24 10:30 AM CST
It looks like Walter Energy (WLT) is gearing up for a bullish run as it signals with a hammer candlestick on slightly better volume than average yesterday. It formed this off the 38% retracement (@ 110.72) and the previous low peaks (2/23, 3/15). We also see a slight continuation divergence in the MACD. All these really line up for a low risk buy opportunity, where you know if it closes below the green and purple support lines you shouldn't be in anymore, but otherwise lots of room to the upside. So from these levels it looks to be more or less a 2:1 reward-to-risk ratio, good enough for me.