TradingMarkets Chart of the Day
For today’s Chart of the Day, let’s take a look at the
Stocks Ready To Drop list published each day on the
Indicators
page. These are the stocks that today made new 10-day highs that are still
in an downtrend as they are trading below their 200-day moving average. They are
sorted in rank according to how over-extended they are vs. their 10-day moving
average. These are simple pullback trades, as we take advantage of a
pullback against the trend, getting a better price on the buy-in.
Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) is
trading in a confirmed downtrend, having traded below its 200-day moving average
for most of the summer. Late in August, WMT started a run-up towards its
200-day moving average, an area of high resistance. Watch for this run to
fail, as WMT folds to the pressure and resumes its downward trend.
Here at TradingMarkets, we have a trading motto:
Pullbacks, Pullbacks, Pullbacks!