SLW: Weekly Chart

They smacked SLW again early in Friday's session, but it came roaring back just as it did on Thursday. I liked that resilience. I bought it for 37.70 and sold it on the rally back to the 38.10 top of the Falling Wedge (white arrow). I wanted my shares back on a pullback, but there wasn't any. The stock was gone on the upside.



Basis the weekly chart, despite the wicked Smackdown off the April 11 breakdown at 44.44,following the Double Fakeout/Breakout, SLW never closed below the Kumo (Cloud), in bearish territory. The mid-June and mid-August lows both found support near the bottom of the Kumo (Cloud).

Interestingly, both the July 22 and August 26 candles are Doji Star Hangmen. I don't infer anything from one candlestick. The July 22 Hangman did result in another trip down to the bottom of the Kumo, but it's ba-a-ack. Notice the June 25, 2010 Gravestone candlestick. It was short-term bearish, but anyone who insisted that it had longer-term implications and remained stubbornly short the stock got caught in an ugly short squeeze. Volume was poor after the upside technical breakout and didn't show up until the stock already had rallied 50%. SLW scored a 100% gain off the August, 2010 Ascending Triangle breakout. As you know, I'm not a big fan of volume.

We've got a "possible" Ascending Triangle setting up in the chart. A pullback here wouldn't be bad at all, as long as the ascending line holds (Black #1 - #3) and the stock eventually breaks out. Given how badly the general market has gotten whacked recently, this chart looks pretty decent, as it stands.




Gain: $2,000