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]![https://hotcopper.com.au/data/attachments/2119/2119241-ecd10b648eb149d6a9a7ba0b9df03e3d.jpg](https://hotcopper.com.au/data/attachments/2119/2119241-ecd10b648eb149d6a9a7ba0b9df03e3d.jpg)
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.
![https://hotcopper.com.au/data/attachments/2119/2119245-dc6f7794dbd4bb26069d99f05ef5ac96.jpg](https://hotcopper.com.au/data/attachments/2119/2119245-dc6f7794dbd4bb26069d99f05ef5ac96.jpg)