This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Consumer Stocks Setting Up to Charge Higher in 2013

Weight Watchers

We're seeing almost the same setup in shares of Weight Watchers (WTW). Like FBHS, Weight Watchers is forming an ascending triangle, with one big caveat: the ascending triangle setup in Weight Watchers is coming at the bottom of a downtrend instead of the top of an uptrend. Even so, the trading implications for both stocks are the same. In WTW's case, the buy signal comes on a breakout above $57.

When you're looking at trades like WTW or FBHS, it's important to think about them in terms of buyers and sellers. After all, patterns like the rectangle don't work because of magic or geometry. Instead, it all comes down to supply and demand in the market. That resistance level at $57 is a price above which there's a glut of supply of shares (it's a place where sellers are more eager to sell and take gains than buyers are to buy). That's why a move above that level is a buy signal -- if WTW can print above $57, it means that increasingly eager buyers have absorbed all of that excess supply that was sitting overhead.

It's worth noting that this could be more than just a short-term pop for WTW -- instead, it could be the start of a new major trend. That's because the 50-day and 200-day moving averages are both starting to roll over and turn higher. The move above $57 would also create a bullish moving average crossover, an added piece of confirmation for upside in this stock. With all of that in mind, it's critical to wait for the breakout before buying...

3 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,143.85 +11.88 0.07%
S&P 500 1,997.30 -1.68 -0.08%
NASDAQ 4,550.6640 -2.0950 -0.05%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs