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Wayfair (W) Is Testing A Key Level, If It Breaks Here’s The Trade

Leading online home-good and furniture website operator, Wayfair Inc (NYSE:W), is testing a key support level around the $88.50 level. This is where the 200-week moving average is located and so far the stock has held this major support area. Traders should note that W stock got slammed on October 31, 2019 after reporting earnings that disappointed Wall Street. The company cited tariffs as problematic and said they caused disruption in consumer decision making. Either way, if the $80.00 area fails to hold as support the stock is vulnerable to decline down to the $61.50 area. This is a level where I would be interested in the stock. This major support area is where the stock broke out in May 2018. Usually, when price tests a former break-out level and it will be defended by the institutional crowd.