weekend charting 5 dec thanks fpmarkets, page-51

Heres some thoughts on WPL:

On a weekly chart price has been rising in a well defined ascending channel. The main problem I can see with this stock is the severe negative divergence in Acc/Dis. You can see it clearly chanelling down and I wonder how long it will be before price follows. There is some serious selling going on in this stock. Its interesting to note that price is also sitting just on the 50% Fib level. A break down from here could mean a pretty serious medium term correction - and it does look like its due for one.

Also when you look at the recent weekly bar chart action you can see that it looks suspiciously like a bear flag. Down on high volume, up on mediocre volume with a few large volume red candles in there as well. Doesnt look real good and I wouldnt at all be surprised if this ascending channel is broken over the next week or two.

Daily stochastic has been favouring over sold side which is bearish IMO. Its also in a bit of a wedge pattern so I would watch for a break down of that pattern. Weekly stochastics show an uptrend that has just broken down.

RSI has been in a down trend since around mid September which is also when the stock started looking exhausted. It has just bounced off the resistance line. Every time price has hit that resistance line it has stopped advancing.

All up I dont like it, with too many bearish signals in there. Theres too much volume going into the red candles for my liking. Seriously - check the nasty Acc/Dis in the bottom chart. You may ask "why has it had such a good run with such negative divergence in Acc/Dis?" and my answer would be simply that this is the exception and not the rule.

[URL=http://img46.imageshack.us/i/wplweeklyvolume.png/][/URL]

[URL=http://img690.imageshack.us/i/wplweeklystochastic.png/][/URL]

[URL=http://img705.imageshack.us/i/wplstoch.png/][/URL]

[URL=http://img710.imageshack.us/i/wplrsi.png/][/URL]

[URL=http://img46.imageshack.us/i/wplaccdis.png/][/URL]