05/01/00 Foster Wheeler Corp (FWC)
Points to watch:
Foster Wheeler is showing signs of
life. A W bottom was confirmed on the stock's daily chart last
Wednesday when the stock moved above resistance at 7-7.25.
The stock is now testing resistance at
9.35-9.50, a level that acted as support in December 1999, and provided
resistance in January and April of this year. This resistance is
just below the stock's 200-day moving average at 9.63.
Short and long term technicals are
rapidly improving. Daily MACD gave a buy signal on April 26th, and
daily OBV, RSI, and stochastics are in solid uptrends. Weekly RSI
and stochastics have both risen above 35 from oversold territory, and
weekly OBV has turned up.
A buy signal would be given if the stock
breaks above both resistance at 9.5 and its 200 day moving average.
Resistance after a breakout would be at 11.4 (a level that acted as
resistance in November and provided support last September and October),
13.2-13.5, 16.3, and 18.9. Support is at 7.9. and 7.
