Can Weir take the pressure and hold support?
Monday, February 23rd, 2009 by daryWeir, pressure, support.. it sounds like a bad cryptic clue on an crossword. Yes I’m actually talking about Weir plc not some sort of “small overflow-type dam commonly used to raise the level of a river or stream”.
I like Weir (of course I don’t recommend them as that would really annoy the folks at the FSA). Why do I like them, well ask yourself what common factor links investments that you like. Yes, that’s right, it makes you money; and Weir has done a great job of doing that for me.
Today Weir pulled back to test support, which normally means it is time to buy; click here to see the research on Weir in The River. Despite a beautiful 21% roll last month after buying at support and selling at resistance, this time around I’m not so sure. The last time it was at support the daily interval stochastic looked like it was oversold and changing trend.
This time around the daily indicators are trending down and look like they have more left in the tank. Will Weir be able to withstand the downward pressure and hold support? Who knows, but right now I’m not prepared to put my money on the line to find out. If it breaks support, it could be worth a closer look at 300 pence. For now it is time to sit back and let Weir show its hand.