Here’s Why You Should Pay Attention To Hidden Divergences
The Nasdaq Composite
Index hit the 38.2% retracement level and reversed to the downside as
you can see below. Notice the index re-crossed below the 200-day EMA
(exponential moving average).
(Charts courtesy of QCharts)
10:29:02 (from TradersWire)
|
Action |
Symbol |
Order Type |
Setup |
Stop |
 Target |
Current Price |
Posted By |
|
Buy |
GENZ | buy stop at 58.91 | double bottom on 3-min. chart |
58.74 | 59.10 | 58.79 |
TK |
The double bottom is one chart pattern used by
many daytraders and investors. It is easily recognized because of its distinct
shape. Genzyme Corp (GENZ) gave us an opportunity to buy shortly before
10:30. Notice the stochastic was indicating a hidden divergence. The stock
recorded a higher low, but the stochastic value declined. If you are interested
in this setup, Brice, Editor-in-Chief, has a
short lesson on this
subject.
10:47:43 (from TradersWire)
Follow up on GENZ (Pt 2)
It has hit our target price. Sell the rest or re-adjust your stop.Â
T.Kamada
If you have questions, feel free to
mail them to me.