Wise Group, symbol WSE, became public in May and, like many IPOs, initially traded lower. That decline continued into the middle of June, when the stock began to form a bottom.
Based on the chart and the analysis I will detail below, WSE is poised to move higher as a Swing Trade.
This is where Master Trader Technical Strategies become so valuable.
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When a stock forms a pivot low — a bar with three higher lows to the left and three higher lows to the right — that pivot becomes an important reference point. It tells us where buyers previously stepped in.
From there, we watch the next test.
A stock can retest a pivot low and fail, continuing the existing downtrend. Or buyers can step in again, defend that area, and begin to change the chart's character. That is what makes retests so important. They help us determine whether sellers are still in control or whether accumulation may be starting.
In Wise Group, buyers did return near the June pivot low. After earnings, the stock gapped higher, closed strong, and formed a bullish wide-range bar on heavy volume. That is meaningful price action because it signals buyer urgency.
However, the stock then moved into overhead resistance — an area to the left where price had previously fallen. That is where many traders get confused. They see resistance and assume the move is over.
But Master Trader students are trained to watch how price acts at resistance.
Wise Group did not collapse. It went sideways. Even more important, a Master Trader Down Bar was ignored. That tells us sellers tried to take control, but buyers absorbed the selling and continued to support the stock on dips.
That is bullish behavior.
Additional Chart Concepts are Reviewed Below
This is the kind of chart lesson I like to share because it teaches a repeatable concept. We are not simply looking at a stock after the fact and saying it went up.
We are studying the clues that suggested buyers were present before the next move.
That is how traders make money consistently over time — not by guessing, not by chasing news, and not by depending on indicators, but by learning to read price action objectively.
The Master Trader approach is built around that idea.
Charts are pictures of the thoughts, beliefs, and expectations of institutions and traders. When we learn to read those pictures correctly, we can identify where buyers are likely to step in, where sellers are likely to defend, and where price may have room to move.
Use Coupon Code July4th at checkout for a course or Membership (Letter or Green Room) during the holiday.
Last Thursday, Wise Group gapped higher again, pushed deeply into overhead resistance, and closed near the day’s high. That was another sign of bullish price action.
The stock has now formed a bottom, experienced a deep retracement, attracted buyers at support, and begun moving higher from that level. For active traders, this is the type of pattern worth studying for a possible swing trade using a defined entry, stop, and trade management plan.
While our approach is technical first, the recent institutional attention is also worth noting. Goldman Sachs and Jefferies reiterated Buy ratings; Bank of America raised its price target and maintained a Buy rating; Morgan Stanley initiated coverage with an Equal Weight rating; and BNP Paribas initiated coverage with an Outperform rating.
Institutional sponsorship does not replace the chart, but it can help explain why buyers may continue to appear on dips. The combination of news and sponsorships - with MTS confirmation!
The bigger lesson is this:
A single trade idea may help you make money once.
Learning Master Trader Technical Strategies can help you identify opportunities for the rest of your trading life.
That is why I share these Chart of the Week lessons.
Whether you are a Master Trader student, a subscriber to our Advisory Letters, or someone still learning how to read charts properly, the goal is the same: to help you become more objective, more confident, and better prepared to find real trading opportunities.
For those who want to learn the complete process, the Master Trader Swing Trading Bundle teaches how to identify these patterns, plan entries, place stops, manage positions, and take profits, all using the same MTS concepts we use in our advisory work.
Markets will always change.
The skill of reading price action can last a lifetime.
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All the best
Greg Capra
