Below are the downside targets for WD-40 Co. (WDFC) based on the work of Edson Gould’s Speed Resistance Lines (SRL).
The assumption by many momentum investors is that WDFC will continue to rise further. However, prior experience suggests that a parabolic rises usually end in a breakdown in the price. Regardless of any further rise in the price of the stock, the conservative downside target is the minimum downside target to watch for. At this time, the conservative downside target is $72.49. We’d become interested in reviewing the fundamentals when WDFC falls at or below the $72.49 level.