WPT, Westport Innovations update

11 days ago we opined that this stock was ready to bounce AND should not trade below $22.50 because of overlap.  We were looking for about an $8 bounce to about $31 as a first target. Here is the chart again;

wpt may 22 2012

The high today, just two working days after the low of $22.76 on May the 17th, was $29.50 at this time, almost $7 higher. We would not exit the trade just yet. The very minimum bounce should have an a-b-c structure, this is probable just the a part. The b could go to $26 and then c would take it up to perhaps as high as $32. Rebounds, even in ongoing bear markets, typically retrace at least 38% of the preceding loss, in this case $27, so that amounts to, possible, $10.26 which would target about $33.There is, of course, an outside chance that we are in a real bull market for this stock. It is too early to bet on that.