The telegram has long ago seen its peak. Probably somewhere between the time of the pony express and then turn of the Century. The internet has done it in. But one of the classic telegram delivery companies, Western Union Company (N:WU), has been able to weather that storm and continue on as a money transfer service. Now setting up inside Wal-Mart Stores Inc (N:WMT), it is doing just fine thank you.
And the stock is looking good as well. After a run higher the first 1/2 of the year, it started to pull back in June. That culminated a better than 78.6% retracement of the up move. But after consolidating the stock is now making a series of higher highs and higher lows.
Last week it pushed through resistance and over 19.30. It also briefly moved over the 200 day SMA for the first time since mid August Friday. Now pulling back toward the 100 day SMA, in a bull flag it is setting up for a good reward to risk trade. Watching for the support at 19.30 to hold and the price to reverse, it can then be used as a stop loss level to trade against for the upside. With over 14% short interest to act as fuel behind the rising momentum indicators it could be the start of a good run higher.
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