Benzinga - 1. WWE stock experienced a major breakout, surpassing the $100 psychological round number with increased momentum as it continued to climb.
2. The company's growth this year has been impressive, outperforming the S&P 500 index with a 54% increase compared to 7.45% for the S&P 500.
3. The stock recently broke out of a long-term consolidation zone, which had been in place since April 2019's high of $100.45 and March 2020's low of $29.10, creating anticipation among investors.
4. The bullish consolidation breakout typically involves a retest of previous support levels, in this case, around $100, which could provide strong support for further growth.
5. If the price continues to rise, the long-term trajectory for WWE stock could reach as high as $150.
It has been an adventurous ride for World Wrestling Entertainment, Inc. (NYSE: WWE) investors, and just nine days since the stock smashed its way up through the $100 major psychological round number.
Price broke through this level with confidence and gained increased momentum as it climbed.
WWE has had an impressive run this year, with growth far outpacing the S&P 500 index. It has experienced a move of 54% compared to just 7.45% in the S&P 500.
The stock could still have further upside ahead as it's only recently broken out of a consolidation zone and may be set for even higher gains!
After an intense period of trading between April 2019's high of $100.45 and March 2020's low at $29.10, there was a major breakout this month that investors had been waiting for four years!
This long-term consolidation created anticipation within the market as investors waited to see how price would move when it eventually moved outside this wide consolidation zone.
Fortunately, resulting in success for those who decided to apply patience. The investors waiting on the sidelines, ready to trigger positions when long signals appear, will also be rewarded as this stock is proving to be a fast-paced mover.
A bullish consolidation breakout usually involves a retest of a previous level of support; in our case, this is around $100.
Momentum appears to have slowed down now, but strong support at $100 could price to greater highs. If price returns back up, we can likely expect price on the long-term trajectory to reach as high as $150!
After the closing bell on Wednesday, April 24, the stock closed at $105.88, trading up by 0.22%.
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