7 Reasons to Rush Out and Buy Whirlpool

There are a couple of stocks that I follow that have offered good examples of how to trade using the Relative Strength Index (RSI) and Whirlpool, $WHR, is one of them. Look at the chart below. Coming off of the technically overbought condition in in mid March it ran from an RSI of near 80 down to being technically oversold on Friday, under 30. Today’s action goes a long way to

confirming a reversal again and a move higher. And it has a lot of support from other factors. In fact there are 7 reasons it is a good idea to consider buying Whirlpool now.

1. Already mentioned, the technically oversold RSI is turning back higher.

2. It tested and held at the 100 day Simple Moving Average (SMA).

3. It tested and held at previous support at 62.88 as noted by the blue line.

4. It printed a bullish Engulfing Candle Monday.

5. The Moving Average Convergence Divergence (MACD) indicator began to reverse back higher.

6. It moved back into the Bollinger bands.

7. These cool washing machines!

So what are you waiting for? The first resistance is at 68.50 followed by 72.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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