Range Expansion
Expansion of range on significant volume is often a signal of accumulation,
and momentum traders should be on the lookout for either a continuation move
after the expansion breakout, or look to play the first pullback. This morning a
big expansion breakout took place in the NCR Corp.
(
NCR |
Quote |
Chart |
News |
PowerRating).
11:38:36
 NCR Corp. (NCR)
is breaking out of a flag pattern on an expansion of its daily range. NCR is
now up 4.84 at 44.70 and is carrying a 3-month
relative strength rating of 16 from TradingMarkets.com.
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Despite the low relative strength, several factors are making
NCR worthy of stalking in the upcoming days. In addition to the expanding range
and increase in volume, the stock has recaptured its 50-day moving average and
has traced out a loosely formed mini head and shoulders, indicating at least a
short-term bottom. The final piece is that today is day eight off the low, so
the downtrend may be over. Keep an eye out for continuation in tomorrow’s
session.
You can use the TradersWire’s java
applet search feature to scan for 52-week highs and lows, and two-month highs
and lows. Take this list and then flip through the charts, looking for expansion
of range. Then look through the charts of the biggest gainers and losers for the
same. I think the work will pay off for you.
Until tomorrow,
Duke
P.S. Be sure to tune in today at 5:30 eastern to Eddie Kwong’s
and my live training session on how to make use of the TradersWire in your
trading. Just click on the icon on the TradingMarkets World homepage. Also
please continue to send any email questions you may have regarding TradersWire
to dukeh@tradingmarkets.com.