12/27/99 Wellman Inc (WLM)
Points to watch:
Wellman has been in a steady uptrend
since ending a 3-week long correction in mid-October. The stock's
decline during its September-October correction was stopped at the 50%
retracement of its March-July rally at 13.12. WLM also held its 200
day moving average on a closing basis during the decline.
The stock has since recovered and is now
challenging its 1999 highs at 17.88-18.13, a resistance level which
stopped rallies in both July and September. Wellman closed up 0.87
on Thursday at 17.75, just below resistance.
Long and short term indicators are
positive and have confirmed the stock's rally from the October lows.
Daily MACD gave a buy signal on 11/23, and both daily and weekly OBV, RSI,
and stochastics are rising.
A buy signal would be given if the stock
breaks above the resistance at 18.13 to a new 52-week high. After a
break, WLM would hit its next resistance at 21, 22.8, and 23.9.
Support is at 16-16.5.
