The WeWork Inc. $WeWork(WE)$ stock price fell by -38.56% on Wednesday, 9th Aug 2023 from $0.210 to $0.129. It has now fallen 4 days in a row. During the last trading day the stock fluctuated 36.14% from a day low at $0.125 to a day high of $0.170. The price has fallen in 7 of the last 10 days and is down by -44.27% for this period. Volume has increased on the last day by 115 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 126 million shares were bought and sold for approximately $16.18 million.
The stock has broken the very wide and falling short-term trend down. Firstly a stronger fallrate is indicated, but false breaks and "sell-off" may occur. However, a further fall is realistic and any reactions back to the breaking point ($0.142) are considered to be a "second chance" to get out. According to the fan-theory -$0.0024 will represent the new bottom line of the next trend, but it is far too early to say this for certain.
WE Signals & Forecast
There are few to no technical positive signals at the moment. The WeWork Inc. stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $0.207 and $0.243. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Thursday, July 13, 2023, and so far it has fallen -56.56%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.
Support, Risk & Stop-loss for WeWork Inc. stock
There is no support from accumulated volume below today's level and given the right condition the stock may perform very badly in the next couple of days.
This stock may move very much during the day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $0.0451 between high and low, or 36.14%. For the last week, the stock has had daily average volatility of 15.49%.
WeWork Inc. is oversold on RSI14 (21). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.
Our recommended stop-loss: We hold a negative evaluation for this stock. No stop-loss is set.
Trading Expectations (WE) For The Trading Day Of Thursday 10th
For the trading day on Thursday, 10th we expect WeWork Inc. to open at $0.141, and during the day (based on 14 day Average True Range), to move between $0.1000 and $0.158, which gives a possible trading interval of +/-$0.0289 (+/-22.43%) up or down from last closing price. If WeWork Inc. takes out the full calculated possible swing range there will be an estimated 44.85% move between the lowest and the highest trading price during the day.
Insiders are very positive buying more shares than they are selling in WeWork Inc.
In the last 100 trades there were 1.13 billion shares bought and 652.06 thousand shares sold. The last trade was made 20 days ago by Fritts Lauren who bough 0 shares. The large amount of stocks bought compared to stocks sold indicate that the insiders believe there is a potential good upside. In some cases larger purchases can be explained by due date for stock options.
Is WeWork Inc. stock A Buy?
WeWork Inc. holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Strong Sell candidate.
Comments