$WFMI – Long Term Trade

$WFMI was mentioned on Ivanhoff Captial, and prompted me to take a quick look. 

I first noticed a Wedge forming from the past 1.5 months, since the gap-up that occurred back in early-February

Extending the chart further reveals that the Support (Lower) Level of the Wedge also served as the Resistance (Upper) slope of the rising trendline from last year.  It’s an example of a Resistance Line turn to become the Support Line.

Jumping over to the weekly chart, I plotted a Fibonacci Line using the high of Jan 06’, and the low of December 08’, and noticed that the most of the major Fib. Points aligns with major Support/Resistance level throughout the years. 

My Entry will be the at the break of the Upper Wedge (see White Line), and my Stop will be just underneath the Lower Wedge, below the the long shadows (see Red Line).  My Target will be the high of Jan 06’.