WATG has been within many trading concept scenario and many trading signals in the past. Most recently not successful in its trade setups in late 2010.
The last few trading days in WATG has set up a similar short term trading opportunity to others in the past, however the stop loss reference at this point is attractive.
The risk is that this is another corrective wave higher in a downtrend and a 5% stop loss is used. The reward is about 12% from current levels, with the potential that other larger trend scenario could build off this recent low.
Looking at volume on a daily chart, WATG shows that there is a possibility that the same 2.1 million shares that exited the stock on the highs of 11/9/10 may have been interested in getting back in. The same share count is seen on 2/9/11, one day before a low of 6.41 that has held so far.
This price would be a short term sell stop level.
The trading off this low was tested yesterday with some volume and if a third wave is to develop off this low from the top of 6.94 on 2/14/11, WATG could provide a nice move higher to 7.60.
