The telegraph is long dead, and Western Union did not notice

• Posted by Greg Harmon
• on October 26th, 2015

The telegram has long ago seen its peak. Probably somewhere between the time of the pony express and then turn of the Century. The internet has done it in. But one of the classic telegram delivery companies, Western Union, $WU, has been able to weather that storm and continue on as a money transfer service. Now setting up inside Wal Mart, it is doing just fine thank you.

And the stock is looking good as well. After a run higher the first 1/2 of the year, it started to pull back in June. That culminated a better than 78.6% retracement of the up move. But after consolidating the stock is now making a series of higher highs and higher lows.

Last week it pushed through resistance and over 19.30. It also briefly moved over the 200 day SMA for the first time since mid August Friday. Now pulling back toward the 100 day SMA, in a bull flag it is setting up for a good reward to risk trade. Watching for the support at 19.30 to hold and the price to reverse, it can then be used as a stop loss level to trade against for the upside. With over 14% short interest to act as fuel behind the rising momentum indicators it could be the start of a good run higher.

Get my ebook, Markets for 2015 and Beyond, a long term forecast with all proceeds going to charity.

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through September 2015 and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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.

blog comments powered by Disqus