The Outsider
A good thing to look for if you are a pullback player is the outside day at
the end of the pullback. Dave Landry often profiles this formation when they
play out in the stocks in his database.
The Stanley Works
(
SWK |
Quote |
Chart |
News |
PowerRating) is forming an outside day in its pullback to
the 50-day moving average. SWK is currently up 0.39 to 42.40 and is holding
a 3-month
relative strength ranking of 65 from TradingMarkets.com.
For candlestick aficionados, this is the bullish engulfing day.
We keep an eye out for this in TradersWire,
and so should you. There are few greater signals as to a possible
change of direction.
Until tomorrow,
Duke