Stock of the day: Wayfair

As American traders return after Wednesday’s break, we turn our attention to Wayfair, which presents an intriguing trading opportunity. Since September 2023, Wayfair’s price has formed an ascending channel, essentially a flag within a larger downtrend. Currently, the price is testing the lower boundary of this formation, with three consecutive bearish days indicating sellers are poised for a potential breakout.

If the price closes below the red line today, it would confirm a sell signal. However, history shows that merely testing this support isn’t enough; in late April, the price spent five days at this level before a bullish gap led to an upswing. Therefore, while the current pressure on support is significant, a definitive sell signal requires a clear breakout. Conversely, a strong bounce, such as a bullish candle or gap, would indicate a mid-term buy opportunity.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-wayfair