FWLT Chart – Nearing Support

Last week I wrote about the FWLT chart that looked like it had room to move higher.  I even sold some cautiously bullish puts on it based on the lower trend lines.  I was wrong.  I jumped the gun.  Soon after I posted the chart FWLT started to weaken.  I drew the same line as last week, but thinner to show how that same trend line followed through.  It acted as support off and on and then gave way. 

My naked puts (good thing I was cautious somewhat with my strike) are now in the money, but I actually think FWLT has a good chance of rebounding from here.  It’s right on the trend line of higher lows from the past six weeks.  Just below that is the other trend line I drew last week.  It’s possible to help with support too.  The horizontal line marks the line of highs from August and is a few cents below the price around 2:50 pm today ($31.04).

The 10 and 20 day moving averages broke like they were nothing.  I left the 10, 100 and 200 day moving averages in the chart just to show how fast FWLT has risen from its lows.  If FWLT gets back down to the mid-20s it’ll be hard not to buy in again.