TradingMarkets Chart of the Day
For today’s Chart of the Day, let’s take a look at the
Pullbacks from Lows list published each day on the
Indicators
page. Most
successful momentum-based traders and money managers like to sell weak stocks
after they pull back. TradingMarkets.com uses a proprietary mathematical model
to identify up to 20 (in strong or choppy markets there will be fewer) weak
stocks that have pulled back from recent lows. These stocks should be considered
potential candidates to resume their longer-term downtrends.
Reliance
Steel
(
RS |
Quote |
Chart |
News |
PowerRating) has been in a confirmed downtrend since the beginning
of August, when it broke support and started trading below its 200-day moving
average. August 28 saw RS make news lows, and then on August 30 price
pushed hard towards its moving average, leading to a failed rally. Watch
for RS to continue to move down, and use your knowledge of trends to short this
stock’s pullbacks.
John Patrick Lee