Weight Watchers International, Inc. (NYSE:WTW) rallying more than 20% as it adds more ‘influencers’ like Oprah
J.P. Morgan added Weight Watchers to the firm’s list of “overweight” stocks, saying the weight loss company is poised for “outsized” growth as it looks to add more big-name celebrities through its partnership with Oprah Winfrey.
“Management stabilized the trajectory … by revamping its points program, significantly improving the mobile platform, and recruiting pivotal social media influencers,” J.P. Morgan analyst Christina Brathwaite wrote in a note.
“Winfrey is and will continue to be a key advertising partner [as the company expands] by broadening its social media influencer base,” Brathwaite said, adding that Weight Watchers this year signed record producer DJ Khaled, chef Eric Greenspan, comedian Kevin Smith and singer Hélène Ségara as influencers.
Shares of Weight Watchers rose more than 5 percent in early trading Tuesday. The stock was up 96 percent in the past year through Monday’s close at $86.90. J. P. Morgan’s price target of $105 a share is 21 percent higher than that closing price.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 74.35.
The projected upper bound is: 98.12.
The projected lower bound is: 86.47.
The projected closing price is: 92.30.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 74.8225. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 73.77. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 3 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 157.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 6 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 4 period(s) ago.
Rex Takasugi – TD Profile
WEIGHT WATCHERS closed up 4.840 at 91.740. Volume was 30% above average (neutral) and Bollinger Bands were 14% wider than normal.
Open High Low Close Volume___
91.790 93.910 90.500 91.740 465,826
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 83.34 73.48 58.05
Volatility: 63 49 61
Volume: 312,146 344,619 300,863
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
WEIGHT WATCHERS gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
WEIGHT WATCHERS is currently 58.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of WTW.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on WTW.N and have had this outlook for the last 40 periods. Our momentum oscillator is currently indicating that WTW.N is currently in an overbought condition.
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