Here’s a technique for aggressive traders

In today’s Chart of the Day, we’re going to look at the

Low-Priced Stocks Ready To Surge

These are the stocks under $10/share that today made new 10-day lows that are
still in an uptrend as they are trading above their 200-day

moving average.
They are sorted in rank according to how over-extended they are vs. their 10-day
moving average. For example, the top ranked stock is trading the furthest
distance from its 10-day moving average on a percentage basis. Historically,
these stocks on average have had larger than normal short-term upside reversals.
Please note: All stocks carry risk and low-priced stocks usually come with even
more risk. Always use caution.

The list for 07/21/06 (Friday’s close) has only one stock that meets the above
criteria. It also has a high PowerRating (7-10) suggesting it is likely to
outperform the S&P 500 this week.

VC |
Quote |
Chart |
News |

1. 200-day MA

2. 10-day low

3. 10-day MA

In the days to come we’ll show you more of these examples on both the long and
short side. I’ve enjoyed showing you this Chart of the Day, please feel free to
email me at
if you have any questions or comments.

Ashton Dorkins


Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding. Controlling risk through the use of protective stops is critical.