W Short IdeaFailed to go higher. Earnings around the corner. Overextended on the weekly chart. RSI decreasing.
W trade ideas
Wayfair 6 month history looking goodNot sure how people say this price is high at the moment ... its just a continuation of a up trend..
Running divergence at breakout point of a falling wedgeRunning divergence at breakout point of a falling wedge.
Thanks to @kpac82 for getting a jump on this chart. If you don't follow him already, you need to. Here is his Twitter and StockTwits .
Buy: 68.75
Target: 72.21 - 76.79 (5.03% - 11.69%)
Next Day Delivery on Negative Equity.Fundamentals are horrible. Company has thrived on low interest rates as they've been able to borrow to cover short term payables. Negative equity is on its way by next quarter.
W - Nice breakdown short from $73.07 to $60, $75 Aug puts W seems very good potential earnings play. It hasBig insider selling and weekly options available. Would consider weekly or monthly August $75 puts if we break 73.07. Possible target of 66.00. $70 November puts for possible longer term play.
Range BoundAccording to the technicals Wayfair has been range bound for the past year or so. A strictly technical trader would notice the recent consolidation around 38 and likely be thinking prices would rise. However, I do not believe in the business model. Many people like to go into a psychical store before buying furniture, and other already established furniture dealers also have an online presence which is big competition for Wayfair. Combine this with their difficulties posting profits quarter after quarter and I do not see this stock doing well in the long term. Short term we may see a bump back up to 48 or so but long term I would not park my money here
Wayfair W Double Bottom w/Handle BaseWayfair (W) has formed a second stage double bottom with handle base. Volume spiked up the right side of the cup and is drying up in the handle. The stock had a bullish reversal support week the week of February 12, 2016.
While Wayfair is not expected to post positive earnings for at least another two years, it has beaten analyst estimates by 40% or more over the last three quarters, and sales growth has accelerated over the past four quarters from 39% to 81%. NYSE:W
