Let The Trendline Be Your Friend

  • August 24, 2000
  • Eddie Kwong

One of the pullback player’s best friends is the trendline.
 Trendlines often
define support zones for pullbacks. This is especially convenient when there are
other patterns providing support when a stock hits a certain price level. 

Here’s an example.

In this case, the entire package for the pullback player is present in PE
(
PEB |
Quote |
Chart |
News |
PowerRating). He just has to sit and wait for positive price action that would react
off support from its trendline, its 20-day moving average, and its range-lows.  

Sprinkle in a little spurt in volume and you have the recipe for your
proverbial trend continuation. 

See you tomorrow,

Eddie