WageWorks (WAGE) Stock: Buyers Bid Up, Consider Going Long
NEW YORK (TheStreet) -- WageWorks (WAGE) - Get Report has been trading sideways in a relatively tight range with buyers becoming more aggressive.
If you look at the last three months of trading on WAGE in this chart, above, you can see what chartists call an ascending or rising triangle pattern. The top of the triangle is defined by a horizontal line across $50. The lower trend line rises from late July as buyers come in at $42, $43, $44 and this past month at $45. The demand for WAGE increases while the supply is steady at $50. Eventually, demand should overcome the supply, and we get an upside breakout.
This chart, above, shows that prices have closed above the 40-week moving average. The OBV line is neutral, and the Moving Average Convergence Divergence oscillator should soon cross back above the zero line.
Strategy: Have a buy-stop above $50 to get long WAGE when it makes an upside move. Enter a sell-stop based on your entry price.