wow chart

Heres a chart for WOW:

On a weekly chart price is trending down in a descending channel. It was down on very high volume last week and this week finished with a spinning top candle on high volume indicating a likely reversal in short term trend.

On the daily chart, it tested the bottom of the channel on Feb 2 and respected it. Its also got strong horizontal support at $25 giving converging support. It may test the bottom trendline and $25 again before bouncing or it could just head for the top of the channel from here with a target of around $27. You can also see on the price envelopes of the 20 EMA that it is looking very oversold and is way below the bottom envelope.

Daily stochastics has broken out of a downtrend confirming the bounce off the bottom of the channel in price. Its also hit support horizontally and bounced.

RSI is channeling down and is currently in an oversold area, though it has just turned down. Still I dont expect it to stay down for long as it is oversold.

ACC/DIS is pretty much confirming the trend. There is very minor positive divergence there but nothing to write home to mum about.

MACD is printing some interesting stuff. It showed positive divergence on Jan 5 which failed. When MACD divergences fail to swing the trend, there is somthing majorly wrong. Instead of making a new uptrend price broke sharply at the top of the channel confirming the downtrend to continue. MACD is now following the down trend again making a lower low in histogram.

All up I favour a bounce here off the bottom of the channel or perhaps around $25 with a target of around $27....The indicators are basicaly reflecting the chart. I wouldnt trade this as the trade would be going against the larger trend, but I would consider shorting it at the top of the channel at $27 if the indicators were not out of wack with the trend. I would go long if it broke the top of the channel on increasing volume.