When a stock isn't moving much off the late August lows, one has to worry a bit. That's the case with Weyerhaeuser (WY).
While the stock has bounced some, all it's done is form a bearish flag (wedge) after a big drop. A breakdown from this wedge should give provide a quick test of $27, but ultimately push WY back into the $24 area. The bounce from last week not only met resistance on price, but the ultimate indicator (UI) was rejected at 50 and the slow stochastics below 50. The poor relative strength index (RSI) couldn't even clear 40. The most recent bounce was a dead cat bounce to perfection. Until WY clears $28.50, this is one very bearish setup.
The weekly setup isn't any better, other than an RSI that is very oversold and may need some price stability to alleviate the current situation. The last three weeks, though, have seen RSI drop dramatically, the UI push into bearish territory and price lose an uptrend line going back over two years. After a few weeks between $27 and $28, it looks like WY will head to at least the low $25s. This is a bit better than the daily chart, but WY could easily see an overshoot into the $24s, which would line up well with the daily chart.
The last three weeks have done so much damage to the weekly chart that only a bounce to $30 could get me bullish. In reality, the best I can foresee is a neutral chart trading between $27 and $29.
While it may not make a home run short, this certainly looks like an avoid when shopping for long opportunities.