The technical picture of the Western Union stock (NYSE: WU) on our 4-hour chart shows that, lately, the price action has been moving in a roller-coaster fashion. Yesterday, the stock broke above its short-term tentative downside resistance line drawn from the high of April 29th. At the same time, WU is now trading above a short-term upside support line taken from the low of May 26th. For now, we will take a positive approach and aim slightly higher.
If the stock moves up and breaks above yesterday’s high, at 25.32, this will confirm a forthcoming higher high, potentially inviting more buyers into the game. WU could then make its way towards the 25.96 hurdle, marked by the high of May 10th, where a temporary hold-up might occur. That said, if the buying interest remains, the share price may rise to the 26.61 level, marked by the highest point of April.
The RSI is currently flat but sits above 50. The MACD continues to point higher, while running above zero and its trigger line. The two indicators show positive price momentum, which supports the above discussed scenario.
Alternatively, if the stock suddenly falls below all of the trendlines mentioned previously and also drops below the 24.55 hurdle, marked by the current lowest point of June, this might spook new buyers from entering for a while. WU may drift to the lowest point of May, at 24.17, a break of which would confirm a forthcoming lower low, this way possibly clearing the path towards lower areas. That’s when we might aim for the 23.25 area, which marks the lowest point of March.
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