Throughout my trading career I have been able to isolate a lot of tops and bottoms in the market. One of my primary tools for doing this has been by using the techniques from the legendary WD Gann. While I prefer to use conventional technical analysis along with Gann techniques sometimes when trading new issues there isn’t enough chart data to work with. In that case, I will often just use the Gann techniques as a stand alone method.
Recently, one of the hot IPOs, Slack Technologies (NYSE:WORK), has come under heavy selling pressure. The stock debuted on June 20th 2019 and traded as high as $42 a share. Since that day, the stock has plunged and is currently trading a $25.05 a share. Many traders and investors are now wondering where the stock could bottom. While we don’t have a lot of chart data to work with the Gann wheel tells me that the stock should find solid support around $20.50 level. Now I will be looking for a bottoming pattern when the stock reaches that price area. Stay tuned and keep Slack Technologies (NYSE:WORK) on the radar.