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by Darius Anucauskas

Western Union Still Has A Chance To Move Higher

Western Union Company (NYSE: WU) continues to show stability during these adverse times. After the release of the Q2 earnings report this week, the stock got pushed higher, and even at one point on Wednesday it overshot the June high, at 24.89, but then sold-off very quickly. The share price drifted a bit lower yesterday as well and although the recent trading activity looks a bit gloomy, WU continues to trade above a short-term upside support line taken from the low of May 14th. If that upside line remains intact, there is a good chance the buyers could jump back into the action, hence why we will stay cautiously bullish for now.

If the stock continues to drift lower, but finds good support near the aforementioned upside line, new buyers might take advantage of the lower price and jump in, in order to move it higher again. If so, that’s when we will target the 23.47 hurdle, marked by the inside swing low of August 3rd. If the buying doesn’t stop there, the next potential resistance area to consider might be between the 24.89 and 25.10 levels. Those levels mark the highest point of June and the high of this week respectively.

The RSI, although pointing slightly to the downside, remains above 50. The MACD, despite moving a bit below the trigger line, the indicator continues to balance well above zero. All of the above could be inline with the idea of seeing a small correction to the downside first, before another possible upmove.

On the other hand, if the aforementioned upside line fails to provide support and breaks, that may spook potential new buyers from entering, especially if the share price slides below the 21.65 hurdle, marked by the low of July 20th. If such a move occurs, the stock may end up sliding to the 20.31 area, which is marked by the lowest point of July. Initially, WU might stall there for a bit, or even rebound somewhat. However, if there are still not enough buyers, the price could reverse back down again. If this time the 20.31 zone breaks, that open the way for further declines, possibly leading the stock to the 19.92 obstacle, or even the 19.30 level, marked by the low of May 26th.  



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