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Home Markets Markets Western Union Company hoping to break resistance levels
Western Union Company hoping to break resistance levels PDF Print E-mail
Written by Will Peters   
Thursday, 11 March 2010 10:59
Analysts at JPMorgan Chase and Barclays Capital say investors should target gains of between 21.14% and 33.25% on Western Union.



The Western Union Company (NYSE:WU) is set for growth, and investors would do well to back the company - this if you trust the analysis of investment bankers at JPMorgan Chase and Barclays Capital.

Over the past 24 hours the following upgrades on Western Union Co stock was made:

JPMorgan Chase have set a new target price of 20, that is 21.14% higher than yesterday's close of 16.51.

Barclays Capital are slightly more bullish, they have set their sights on the 22 mark, this 33.25% higher than yesterday's close on Wall Street.

However, a technical analysis at TradersHuddle.com suggests that at current levels the stock is over extended:

"Shares of Western Union Company are trading very close to calculated resistance at $16.71 with the current price action closing at just $16.51 placing the stock near levels that make it difficult to buy.

"Western Union's current stock range is defined by current calculated support defined at $15.71 and by the resistance level at $16.71, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level," says a report on the matter.

Traders don't have a clear entry point for Western Union, as the stock is well above support, however, as the stock pulls back towards $15.71 it will definitely provide a reference point to establish a trade.

On the other hand if the stock decides to break above resistance level at $16.71 then traders will get an opportunity to enter Western Union stock by establishing a position as the stock moves to a higher range.

Could the latest analyst upgrades be what is needed to help the stock break this resistance level?
Last Updated ( Thursday, 11 March 2010 11:01 )