WST Seems very interesting short setup. It is rolling over like inverse fallen angel formation. We think it has good down side potential.
* Trade Criteria *
Date First Found- July 5, 2017
Pattern/Why- Inverse fallen angel formation
Entry Target Criteria- Break of $92.87
Exit Target Criteria- 1st Target $88.68
Stop Loss Criteria- $95.42
Please check back for...
WST seems forming a downward neckline Head & shoulder formation, and it appears to break below the neckline.
On the long term chart it seems forming a larger scale H&S formation. Moreover it has 1.2million (approximately) worth recent insider selling.
We think it will be an interesting short play at the break of $78
We can short $WST without much difficulty here. Short at the open and risk either a new daily high, or use no stop and size the trade based on 0.5-1% exposure, considering a $4.83 risk per share.
Target on chart, but, keep in mind this can evolve into a longer term downtrend here as well due to the valuation the company has up here. It's practically a bubble, once...
WST offers a low risk short trade, specially if we open below 79.06 tomorrow. Risk a move back above 81 or higher.
You can enter a half position first, so keep risk to 0.5% or less. Max risk shouldn't exceed 1%.
Props to Tim West for all his help and insights.
Good luck!
Ivan Labrie.
For those of you just putting your toes in the water in the investment world, this is a good example of the long term wealth that can be built in the stock market.
What causes long term wealth? The compounding effect of sales growth through a profitable venture.
The investment world always has to say that the past does not predict the future and that past...
Target: 59+, +9%
Stop: <53 (approx 52.5), -4%
Reason: Oversold to "Key Earnings Level" that has held declines after the last three earnings reports.
Risk: Less than half of the upside potential.
Reward: Up to the last earnings release level at the 60 level.
With the S&P futures up strongly this morning and relief from a Chinese market rally despite terrible...
A very obvious distribution pattern (we all call a H&S top) and a clear downtrend, but it is right into support from the last KEY HIDDEN LEVEL - EARNINGS SUPPORT and furthermore, earnings are due shortly.
So, If we can see 51-52 to sell against AND earnings are out, then I would go for a short for a 49-47 target and risk $1-$1.50 from entry.
Tim 9:52AM EST ...
PORTFOLIO MANAGEMENT USING 5% and +/-1% Position Size
Use a starting allocation of 5% of a portfolio to this stock: When the stock outperforms relative to the S&P by 20%, the weighting will have risen to 6%. Therefore, trim the position back to 5% by selling shares. Sell 16.66% of your shares to trim the position from 6% back down to 5%.
Then, you wait for...
Technical forecast for short term price movement.
24 days of "supply" sit at $49 for WST.
Risk is 3 times the 10-day ATR.
Downside potential down under $45.
Low volume rally back into key, and maximum overhead supply zone.
Warning: Thin stock - average volume 410K shs.
Tim 2/18/2014 1:38PM EST
West Pharmaceutical Services, Inc. manufactures and markets pharmaceuticals, biologics, vaccines and consumer healthcare products. It operates through the following business segments: Proprietary Products and Contract-Manufactured Products. The Proprietary Products segment offers proprietary packaging, containment and drug delivery products, along with analytical lab services, to biologic, generic and pharmaceutical drug customers. The Contract-Manufactured Products segment serves as a fully integrated business, focused on the design, manufacture and automated assembly of complex devices, primarily for pharmaceutical, diagnostic, and medical device customers. The company was founded by Herman O. West on July 27, 1923 and is headquartered in Exton, PA.
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WST
