On April 30th, however, RBC Capital Markets downgraded WFR to sector perform from outperform and cut the price target to $53 from $72. The analyst suggested that investors should book profits and reallocate capital else where. The stock responded by selling off on 17 million+ shares compared to the daily average of 5 million.
Technically, WFR created well established trendlines extending back into early November. After the analyst downgrade, shares gapped through the bottom trendline and preceded to move through the 50 DMA until support was found near $52.00/share. Immediately after we saw a weaker volume rally until resistance was met at the 50 DMA. Currently there is weak support at the $57.00 level, which if broken should lead to a testing of the $54.00 range.
My target is $54.20.