FWLT Chart – Breakout

I charted Foster Wheeler AG (NASDAQ: FWLT) at 10:53 am on September 17, 2009 when it was trading at $34.75.  FWLT broke above previous resistance at the open today and climbed from there.  Although it is off its highs of the day, FWLT still looks strong.  I expect the upward movement to continue, but wouldn’t be shocked to see it come down and touch one of the earlier trend lines I drew below before taking off even more.  Volume in the first hour today was more than the whole day yesterday.  I assume some short covering added to the jump.

Disclosure: I sold naked puts this morning at the October 33 strike in a cautiously bullish move that takes the dip into account.