WLT will be added as an Active Long Trade and new Setup here around the 11.00 area. This is the epitome of the “trying to catch a falling knife” trade and as such, should be considered a very aggressive, high-risk trade. The reasons for adding WLT as a long is the fact that the stock has fallen to support on the weekly chart with what may prove to be a selling climax (capitulation selling). Zooming into the 4-hour period chart, WLT may possibly be hammering out the final stages of a bullish falling wedge pattern complete with positive divergences in place below on the MACD & RSI (again, note the recent large volume surge on that time frame as well).
My preference with WLT is to use a scale in strategy, beginning to accumulate shares at current levels starting with about a 1/4 position size and adding in 1/8 – 1/4 increments over the next few weeks, as long as the stock remains above the 10.70 level. Exact stops will vary based on my average cost but will most likely be no lower than a weekly close below 10.30. A couple of likely targets are shown on the 4-hour chart below with the exact suggested target levels to be updated if this trade begins to get some traction.