Doubling Up

  • October 12, 2001
  • Duke Heberlein

The 20-day moving average can be a key alert zone for the swing trader,
particularly when one or two previous bounces have taken place in the past two
weeks. If you can also factor in a key Fibonacci retracement level, so much the
better.

 

11:07:55

 First Energy (FE)
is pulling back to the 20-day moving average and an area near the 38.2%
retracement of the last leg higher. FE is currently unchanged at 34.75 and
is carrying a 3-month
relative strength ranking of 93 with an uptrending ADX of 48 from
TradingMarkets.com.

 

FE is currently hitting its 20-day MA not far from the 38.2% retracement of
the August 15 low to the October 4 high.

 

 

This strategy will often alert you to an upcoming short-term
reversal. Let’s see how this one plays out.

Have a great weekend,

Duke