Technical Summary: It has been a wonderful 5 years for holders of TWE as the stock has found its way to new highs in a very narrow trading channel. This trend is visualised in the chart above and has continued unabated over the last year. The price action at the current juncture is the most interesting on this chart. Firstly the stock broke out of a nice 10 week base on increased buying volume. The breakout was short lived however and soon broke to the downside on heavy selling volume. The stock then gapped through its former base and the 50 day moving average. The stock has not stopped there and the selling has continued on heavy volume. There is different ways to interpret this action. Buy the dip traders may see this as an opportunity to enter the stock on a dip. This strategy is one that has worked successfully in the past with TWE as marked on the chart. As always it is best to wait for strength on the dip. The other side of the coin is that the stock is in freefall and has no logical support until around $14.50 per share.
