WTW Stock Jumps After Oprah Deal, More Upside?

WTW Stock Jumps After Oprah Deal, More Upside?

WTW Stock Jumps After Oprah Deal, More Upside?

WTW stock made a huge leap after Oprah Winfrey announced a partnership with the company this Monday. Shares of Weight Watchers International are now testing the long-term descending trend line visible on the daily time frame, potentially gearing up for an upside break if momentum keeps up today.

RSI is already indicating deeply overbought conditions, which suggests that profit-taking around the current levels might take place. Stochastic is also on the move down, which means that the rally might already be exhausted.

For now the 100 SMA is below the longer-term 200 SMA but an upside crossover might be brewing since the moving averages are edging closer together. In that case, bullish momentum could pick up steam and eventually spur an upside break of the trend line and a longer-term climb for WTW stock.

WTW Stock Outlook

“I believe in the program so much I decided to invest in the company and partner in its evolution,” said Oprah Winfrey in her official statement. Prior to this, WTW shares have been on a steady downtrend after gapping down earlier in the year. Oprah’s fame is expected to bring in more interest in the company and possibly improved sales figures.

At the moment, price is stalling around the psychological $20/share barrier, with an upside break likely to take it to the next resistance at $30/share near last year’s highs. However, should the hype be unable to prop up WTW stock in the near term, a pullback to the previous $10/share psychological support to close the gap might be in order.

Winfrey has had a good track record of bringing in buzz to products she has endorsed, which is why several analysts have changed their rating for WTW stock from sell to buy. With a large stake in the company, it’s hard to imagine that Winfrey won’t do much to revive interest in the company.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com