Low-Priced Stocks Ready To Surge – NT
Everyday after the markets close TradingMarkets publishes a
number of proprietary
indicator
lists. These lists are intended to help you make trading decisions, they
are not recommendations to buy or sell any particular stock, but they are
a very useful way of allowing us to run scans for you that may provide trading
ideas.
Each indicator includes a description that helps you pick the
right stocks for your particular trading style. For a more in-depth description
of the techniques we use go to the
TradingMarkets
University where you will find books and courses that cover the indicators
in detail.
Each day we are going to take a look at a few stocks from the
lists and show you how the indicators can be used with your own analysis.
Today’s stock is from the
Low-Priced Stocks Ready To Surge section.
Nortel Networks
(
NT |
Quote |
Chart |
News |
PowerRating)
Nortel made its low way back in May and has spent the past few
months consolidating before breaking out of a triangle pattern in August. NT
then made a 50% retracement before yesterday’s close above its trendline. The
RSI (5) setup a positive divergence and we have a positive DMI crossover today.
Notice how all of these conditions are uncorrelated with the
criteria of the scan that highlighted NT last night. When a high number of
non-correlated indicators are all pointing in the same direction you usually
have a pretty good trade setting up. Clearly that was the case today with NT
which is currently trading +6% higher.
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Ashton Dorkins