Medium term
Trade view / 13 October 2015 at 10:05 GMT

Newell Rubbermaid shares in clear downtrend

CEO / Att Trading
Austria
Instrument: NWL:xnys
Price target:
Market price:
Background

NYSE-listed Newell Rubbermaid is a consumer goods company with a wide range of products and global brands from waste bins to glue and from drill bits to hairbrushes.

Figure 1 shows that the share price has risen since 2011, climbing to $44.00 from $12.00. The stock made a stable uptrend, but is currently in a correction. For mid-term traders this correction is a clear downtrend on the daily chart, and this means traders should get a good short opportunity right now, especially while the overall market is still in a downtrend.


NWL weekly chart shows stock now in correction after gaining since 2011
nwl1
Source: ATT Trading


Management and risk description

The daily chart (Figure 2) clearly shows that a strong downward trend (drawn in blue) has formed. This downtrend is supported by higher volume, and the stock has made an 80% correction with decreasing volume.

Mid-term traders could wait for a subordinate downtrend for entry in the current correction. With increasing selling pressure, targets around $38.00, $36.50 and $34.50 could be very interesting.

Above $44,50 our short idea would be over.


NWL daily chart shows strong downtrend
nwl2
Source: ATT Trading


Parameters

Entry: $43.50

Stop: $44.50

Target: $38.00, $36.50, $34.50

Time horizon: medium term


— Edited by John Acher

Non-independent investment research disclaimer applies. Read more

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