Charts UWL, page-469

After issuing an upgrade to its previous earnings guidance on February 17th, the market took to that announcement fairly well. UWL gapped up, and closed some 10% above its 50-day moving average.^[1]

In saying that, the daily candlestick formed somewhat of a spinning top. That was an ominous sign, because it never closed above that level again. Thanks in part to COVID-19, the price collapsed over the next four weeks, lopping off nearly a dollar till an inverted hammer formed at $0.81.^[2]

That signalled a reversal, and the ensuing rally has recovered about 60% of its previous decline.

On Thursday, UWL gapped up again - and just like February 17th - it bounced 10% above its 50-day moving average.^[3] This time the candle was a more doji-like spinning top.

Over the last two months, daily trading volumes have been noticeably higher than the two months prior to that. There were 7 days where daily volumes went over 2 million,^[4a] but only 2 days in the period before that.^[4b]



Looking to the future, a pessimist may wonder if the new candlestick in ^[3] will repeat the formation that followed candlestick ^[1].

But if you're an optimist, you'll take note of the weekly chart, which shows a sixth consecutive week of green candles. This is the longest weekly streak in UWL's history, beating the May 2019 rally that started at 46 cents and broke 1 dollar.