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
Indicator
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.
Amylin Pharmaceutical
(
AMLN |
Quote |
Chart |
News |
PowerRating)
has been trading below its 200-day moving average,
which tells us that it is currently in a downtrend. Over the last few
sessions AMLN has pulled back up towards its moving average (currently at
$44.35), rallying about 2 points off the recent low.Â
Watch for AMLN to
potentially resume its downtrend in the next week.
Remember: Use pullbacks to get a better entry on a trending
stock.