WLT Walter Energy update 5/27

On 5/24 I offered Walter Energy (WLT) as a great trade opportunity as it formed a hammer on good volume off great support. So far if you got in this trade in the 115-120 level you have been rewarded the last three days as we push into the 125 level and its first real test to the upside. If you happen to load up then this is a good opportunity to maybe consider taking a small quantity off. Still feeling this ends up back in the 135-140 range, and have targeted my position as such.

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.