under downward sloping 50 100 and 200, grainger now in a downtrend until proven otherwise. if it breaks the uptrend from late may without breaking above the 50, i'll try a short against the 50
GWW is approaching our first support at 255.20 (horizontal overlap support, 61.8% fibonacci extension) where a strong bounce might occur above this level pushing price up to our major resistance at 284.50 (horizontal swing high resistance, 23.6% fibonacci retracement).
Stochastic (55,5,3) is also approaching support where we might see a corresponding bounce in price.
I give importance to two things
* First: Weekly Charts
* Second: the years that it took the price to broke the resistance (4 Years and 6 months)
And to this I add the way that the price broke the resistance line (an overnight Gap)
Not visible from the weekly chart but represented by a big green candle (red circle)
This idea meets this requirements:
Resistance...
Strong relative strength in a sector that's got strong relative strength, primed for a bullish breakout to the upside. Targets $300 resistance level which is the 52-week high. Use options to play bullish breakouts to leverage your trade while limiting your risk. Example: Apr 20 270/300 Call Vertical
