Foster Wheeler (FWLT) Chart – 4/9/09

Foster Wheeler (FWLT) provides construction and engineering services.  I drew this FWLT Chart at 12:09 pm on April 9, 2009 while FWLT was trading at $20.42

• FWLT gapped up this morning
• FWLT broke above the triangle that had formed from its lower highs and higher lows trend lines
• FWLT is still trading within its shorter trading channel that started in February
• FWLT is above its 10, 20 and 50 day moving averages
• Williams %R still shows strength for FWLT

Opinion = I’m bullish on FWLT in the near term.  Yesterday looked like the right time to buy if I had noticed that it bounced off the upward trend line of higher lows twice and then closed above the moving averages I track.  Today is not too late to get in based on my chart.  $22.50 could show resistance on the upper side and if this trend continues $20.00 could be support on the lower side within a couple of days.  If $20 breaks, $18 should be the next area of support as the lower trend line catches up some.