Worlds Inc (WDDD)

[Spanky227]

This is another blog by Trader Mark that tryz found yesterday. He is calling for the next breakout to take us to 57¢.

WDDD, Act 3
This week we continued to see upward momentum in WDDD. The stock opened at 41.86 cents on Monday, hit a new 52 week high of 48.8 cents on Tuesday following the anticipated breakout above its prior resistance level, and closed the week at 46.2 cents on 4.8 million traded shares. Overall the stock appreciated by a respectable 10.37% in the last week. The latest chart is shown below, highlighting the anticipated breakout from its prior trading range and the ascending triangle that has started to form during the last few days.



Triangles are particular trading patterns that start at the widest point and as the market continues to trade in a sideways pattern its range narrows, forming the point of the triangle. The lower line of the triangle is the new support line, which is the point where the buyers are exceeding the sellers, so the stock price is rising. The top line of the triangle represents resistance, where investors are selling to take profits.



The figure above shows details the characteristics of an ascending triangle that has formed on the WDDD chart this week, which is very bullish, indicating a continuation of the current uptrend. This pattern shows that buyers are initially unable to push the stock price higher through the resistance line, and in fact the stock may have to take a few runs at it before breaking through resistance in order to establish new highs. For this an increase in the trading volume is needed, which is not happening at the moment so this pattern is likely to continue into next week. Once a breakout does occur buyers will aggressively send the stock price higher, but this may take a while yet as new buyers are likely to take a position once the price succeeds in breaking through the top line of the triangle (new resistance) with increased volume. When this does happen though we should see the stock price rise to an amount that is equivalent to the widest section of the triangle, which in this case would drive the price up to about 57 cents.

http://relengineer.wordpress.com/2013/03/23/wddd-act-3/