Stock Of The Day: Which Way Will Wayfair Go?

Group 1 - Wayfair Inc. shares consolidated after a significant increase of over 12.5% following a strong earnings report, with Q2 earnings reported at 11 cents compared to a loss of 34 cents in the prior year [1] - The stock is currently at a resistance level, indicating potential for either a reversal or a breakout, which presents trading opportunities [1] - Historical resistance levels have been identified, with Wayfair previously hitting resistance around $56.80 in July 2024 and returning to this level in October and December 2024 [2] Group 2 - Resistance levels often occur at prices that were previously peaks, influenced by remorseful buyers who regret their purchases when prices drop [4] - Many investors may choose to sell their stocks when prices return to their buy levels to avoid losses, creating resistance at those price points [5] - Currently, Wayfair has rallied back to the $73.75 level, which was a resistance point in September 2023 and May 2024, indicating that previous buyers may be looking to exit at breakeven [6]