Weyerhauser Co. (WY) – Ample downward potential in the forestry company

ISIN: US9621661043

Weyerhauser Co. is a leading international forestry company that is active in the planting, logging and processing of wood. The corporation cultivates its own and leased woodland predominantly in the USA and Canada, and in addition, also produces numerous wood products. In February 2016, the company merged with the Plum Creek Timber Company, Inc.

In the following analysis, we will go into more depth on the stock of the company from a chart-related perspective.

 

Review (daily chart)

After a long sideways phase, a confirmed downward trend was established in the middle of August. From a technical point of view, the downward movement, which is currently running somewhat more strongly, is just the correction. If this goes a little higher, it makes the stock even more interesting for a short entry, since there are three good targets here with a potential of up to almost 17%.

 

stock WY daily chart with trading targets

stock WY daily chart with trading targets

 

Outlook (hourly chart)

In the hourly chart, we can see the currently running correction, which has yet to develop in our preferred trading direction.

For a short entry, one should wait for a signal to form, e.g. in the form of a P2, and place the stop loss above the last P3 (depicted in green). Alternatively, and with the advantage of a more favorable stop, one can also practice trading from out of the correction i.e. the formation of a reversal bar at a prominent point.

The targets are located in the areas around $31.00 and lower (see green zones in the daily chart), which makes the stock even more attractive for short entries. If the price significantly exceeds the last prominent high at approx. $34.45, the short scenario should be abandoned for the time being (depicted in red in the daily chart).

 

WY hourly chart with outlook

WY hourly chart with outlook

 

Before trading, one should take news in the environment and from the company into account. Similarly, one should also observe the development of the overall market.

 

 

 

Disclaimer:

Exchange transactions are associated with significant risks. Those who trade on the financial and commodity markets must familiarize themselves with these risks. Possible analyses, techniques and methods presented here are not an invitation to trade on the financial and commodity markets. They serve only for illustration, further education, and information purposes, and do not constitute investment advice or personal recommendations in any way. They are intended only to facilitate the customer’s investment decision, and do not replace the advice of an investor or specific investment advice. The customer trades completely at his or her own risk.

Weyerhauser Co. (WY) – Ample downward potential in the forestry company
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