WWE May Be Surrendering To Profit-Taking
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
World Wrestling Entertainment (NYSE: WWE) 'A' shares were trading lower by $0.85 (5.2 percent) at $16.50 in Wednesday's session. With no substantial news out on the issue, it appears there may be a bit of profit-taking in the issue after its recent rally.
On January 27, the issue bottomed at $10.18, resting at two-year lows, only to reach $17.58 very early in Wednesday's session. Interestingly, that is only $0.11 higher than Tuesday's high ($17.47). putting in place a potential double top (a technical analysis tool used to describe the rise of a stock, a drop, another rise to the same level as the original rise, and finally another significant drop).
The current high represents the highest level for the issue since it peaked on May 15 at $20.65. So far, the decline has breached Tuesday's low ($16.59), reaching $16.20 before attempting to rebound. he next daily low under the current low is not until last Friday's low ($14.36).
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