Watch Out: Barbarians At The Gate For Weyerhaeuser (WY)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified Weyerhaeuser ( WY) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Weyerhaeuser as such a stock due to the following factors:

  • WY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $130.5 million.
  • WY has traded 3.5 million shares today.
  • WY traded in a range 206% of the normal price range with a price range of $0.89.
  • WY traded above its daily resistance level (quality: 18 days, meaning that the stock is crossing a resistance level set by the last 18 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in WY with the Ticky from Trade-Ideas. See the FREE profile for WY NOW at Trade-Ideas

If you liked this article you might like

Tax Reform Is Coming and That Means Trump Stock Rally Is Ready to Kill It Again

'Trump Stock' Rally Is Back on Track

Rebuilding Efforts From Hurricanes Harvey and Irma Make These 6 Stocks Must Buys

While It Feels Like the World Is Ending, Keep This in Mind: Market Recon

Owens Corning Stock Could Soar on Home Insulation Demand in Houston