By Chuck Hughes
Yesterday, we looked at a chart of Apple, Inc., and noted that the stock had been making a series of 52-Week Highs.
Today’s Chart of the Day is a Daily Price Chart for The Western Union Co. (NYSE: WU).
WU provides money movement and payment services worldwide, and clearly, its efforts are paying off.
The Daily Price Chart below shows that WU has traded in a clear bullish pattern of higher highs and higher lows since January.
Track the Price Chart from the lower left to the upper right…
This bullish trading pattern points to a further advance.
You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.
But it’s important to note that strong stock rallies are characterized by pullbacks and price retracements.
These pullbacks present a buying opportunity for us.
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Purchasing WU after a 3 to 5% price pullback has provided a good entry point for the stock this year, and has produced a healthy return.
We’re going to keep watching WU as it tops its previous highers and checking for pullbacks.