World Wrestling Entertainment (WWE) has been falling sharply since January 7, 2020. At that time, the stock was around the $67.00 level. Last week, the company announced some key management departures that triggered a decline in the stock. Earlier today, they reported earnings that missed revenue estimates and the stock is falling again. Currently, the stock is trading lower by $5.84 to $43.15 a share. Traders should note that WWE stock has now fallen below it’s important 200-week moving average. This is usually a sign that lower prices for the stock are ahead.

The chart is showing very strong support around the $32.00 area. This is where the stock broke out in January 2018. Often, when stocks decline this sharply they will backtest there prior breakout levels before being defended. I’ll be watching WWE stock for a long side trade around this level.

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