Wednesday, December 23, 2015

WTW Chart - 12/23/15

The Oprah effect has been huge for Weight Watchers, with the stock rallying from around $6 to above $26 in the last three months. The past couple of weeks has seen a steady correction in the stock, and yesterday a key support level around $19.50 was breached. This is bearish action, as the next support is at the gap closing $17 level. Given the recent price action, I think the stock retests $17 in the next few trading sessions.