Chart Analysis » fwlt

FWLT Chart – Nearing Support

Alex F — Fri, 25 Sep 2009 19:29:54 +0000

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.

FWLT Chart – Breakout

Alex F — Thu, 17 Sep 2009 15:32:58 +0000

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.

Foster Wheeler (FWLT) Chart – May 29, 2009

Alex F — Fri, 29 May 2009 18:21:32 +0000

I charted Foster Wheeler AG (FWLT) on Friday, May 29, 2009 before 2:00 pm when it was trading at $26.54. FWLT is considered a midcap growth company and is in the Industrial Goods sector.

FWLT has been running in a very stable trading channel for more than a couple of months
This morning FWLT breached the top side of that trading channel’s trend line of higher highs
FWLT crossed above its 200 day simple moving average (sma) two days ago (not shown) and then came back below before coming back to close above it yesterday – through 2pm today FWLT has stayed above that line
FWLT remains well above its 50 day moving average and has used its 10 and 20 sma as support multiple times
Williams %R still remains overbought where it could stay during this bull run for weeks to come, falling below that will be the red flag

Opinion: Since this trading channel has been so strong for so long I’m not going to fight it and buy in at these prices. That said, it did nudge up above the trend line this morning before faltering. It’s going to be an interesting one to watch. Monday could bring a gap up above that trend line which could offer another good run or it could resume its move back towards the lower trend lines of higher lows. Either path could create a good buying opportunity.

Foster Wheeler (FWLT) – 3 Month Chart

Alex F — Thu, 23 Apr 2009 17:25:07 +0000

I charted Foster Wheeler AG (NASDAQ: FWLT) on April 23, 2009 at 1:02 pm when it was trading at $21.27.

FWLT is trading within the lower half of its two month trading channel.
FWLT fell below its trend line of higher lows intraday two days ago, but closed above it the next day and is trading above it still mid-day today.
FWLT has fallen below its 10 day moving average for four days in a row, but only closed below it on the first day it broke. Since then it has rallied off its lows each day.
FWLT is above its 20 and 50 day moving averages.

Opinion = Even though FWLT continues to break its 10 day moving average it keeps finding support on its trend line of higher lows. $19.50+- seems to be another line of support that could be worth watching. I think FWLT has more upside potential than downside risk.

Foster Wheeler (FWLT) Chart – 4/9/09

Alex F — Thu, 09 Apr 2009 16:41:52 +0000

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.