Wix (WIX) Stock Is On Your Watchlist?

Let us suppose you have been away on vacation for months. Upon your return you are checking up on what has been going on in the stock market.  And you have no idea what stock charts are and how to view them. you read that this week the focus was on Nvidia (NVDA) and its earnings and Nvidia’s upcoming stock split. However, a certain friend asks you to take a look at the two charts below. First look at this one for a second.

And then look at this chart below.

Would you say that this stock seems to be going down in price? Or would you say that it is going up in price? The title of this article gave away the stock being shown.

Wix (WIX) Is Trending Up

The story is the same. Wix (WIX) was in a form of a choppy and quite untradable uptrend before the 2020 Covid panic selling. Unlike the two charts above, this one below is not so clear. The uptrend is there, but not a clear-cut easily visible one. Which automatically means, it was hardly tradable.

Suppose this certain friend who provided you with the first two charts assists you by showing some lines on this chart. And some prices are marked in to further help you focus on what is really happening.

A few things become obvious. It seems like Wix (WIX) was trading between a price of $53 and $82 from February 2017 to around March of 2018. In March of 2018, Wix (WIX) seemed to have moved into a higher price range, a price range above $82 a share but below a price of $120 per share. It remained in the price range of $82 to $120 from April of 2018 to around May of 2019. In a strange way, Wix (WIX) seemed to be climbing a set of stairs. The first step was from a price of $53 to $82. Then the second higher step was from $82 to $120.  Thereafter, a third higher step was from $120 to $148. Wix (WIX) stayed in this higher price range of $120 to $148 and would probably have continued climbing higher until the 2020 Covid panic market threw a wrench and broke the ladder Wix (WIX) was on. As a result, Wix (WIX) started climbing down the ladder instead of continuing its upward step-by-step movement. And as the market panicked and stocks fell sharply quickly in the spring of 2020, Wix (WIX) followed suit and stepped lower to a lower step and fell below into the $82 to $120 price band.

Wix (WIX) Continues Its Uptrend

That step back was short-lived. As the market rallied off the Covid panic lows, Wix (WIX) started its step by step move up. Though nowhere near the wild runs made by other stocks during the second half of 2020 and early 2021, Wix (WIX) generally followed the market direction.

Wix (WIX) was now back on to the step whose price was $120 to $148 initially. And thereafter from $148 to $245. And then from $245 to $294. And then briefly above $294 in early 2021 as the general market was topping. Again Wix (WIX) wanted to just hang with the general market. If the overall market was heading one way, Wix (WIX) was blindly following along.

Wix (WIX) Is In A Downtrend

When the downtrend started, there was no stopping the descent. It was around the price of $303 that seemed to have proved to be too much effort for Wix to overcome, and it was just far easier to let go of the rope and slide down along with the entire market.

The bears were in complete control. Now the step-by-step move was downward. But the downward move was far smoother and remarkably tradable for the bears. Just take a look at the price highs and price lows. It looks like a very tradable short seller operation.

The downward trajectory was quite straight forward with the real commitment to selling coming from around $222.64 onwards. Eventually the selling came to an end with an exhaust volume in February 2022. However, the bottoming out process continued for months. Even though the early change of trend from the descent to a brand-new ascent showed some signs in 2022, nothing really panned out. All the tug of war between the buyers and sellers continued for months.

Wix (WIX) Breakout To A New Price Range

this week, when everyone was paying attention to Nvidia (NVDA), silently Wix (WIX) broke out to a new price range with its highest weekly up volume week ever save for its IPO week over a decade ago. While the starting gun sounded off, it usually does not mean the race truly has begun. There are still certain mileposts that Wix (WIX) needs to achieve to allow it to qualify as a potential real runner. However, it should definitely qualify to be on a speculator’s watchlist.