Chart Clues

  • January 15, 2002
  • Duke Heberlein

Often, a support level on the daily chart can provide the impetus for a
successful daytrade.

 

10:34:04

 Genesis Microchip(GNSS)
is pulling back and finding support at its uptrend line. GNSS has a TradingMarkets.com
3-month RS ranking of 95. It is down 2.03 at 65.11.

 

 

This is what Kevin Haggerty calls an alert zone, that is, where
the stock could likely reverse: You look for a pattern in the intraday
chart with market dynamics moving in the direction of the trade. The
ticks have a brief move higher at the time a Haggerty 1-2-3 forms on the
five-minute chart for GNSS.

 

 

GNSS moves 1 1/2 points higher in the next few minutes. Learn to
find support within the alert zones on a daily chart, and when you find a
pattern on the intraday chart, you will not hesitate to pounce.

Until tomorrow,

Duke