Daeubner: Wolford - Up and Away

Wolford shares broke out to a new high today. The stock has left its narrow trading range and continued its upward movement. This is an excellent buying signal on a technical basis. There is a risk that this break-out will actually be a false break and that the stock will continue its trading range until mid-October. If you do decide to invest in Wolford, make sure to place your stop-loss outside of the prevailing trend channel and make sure that you are and remain patient. Looking at the price history, it is easy to see that most gains were made in a very short time period - and even in an uptrend a stock can be stuck in a sideways trend for several months. If you think that it is an unwise decision to buy a stock at a higher high, you might actually enter a limit-order at €18,50. But you run the risk of your order not being filled and the stock moving up and away - without you holding it. Summary: Buy now and it might be a false break. Plan to buy later and you might miss the next upmove all together. But no matter which strategy you choose, be sure to use a stop-loss in case the trend channel breaks.

Created for http://www.stocks-express.com