Technical Bounce
With the Nasdaq continuing to make downward progress
back for a retest of its May lows, many traders have no doubt shifted
their focus on identifying shorting opportunities. Either that or they’re
staying on the sidelines until the coast is clear.
Some, however, may be looking at stocks that are going against current with
the idea that the October downdraft is so widely anticipated that, perhaps this
time, it’ll be much less pronounced than the majority thinks. With that in mind,
they may be looking to position themselves in stocks showing strength.
One example of this is in Merrill Lynch
(
MER |
Quote |
Chart |
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PowerRating)
Merrill Lynch made a nice technical bounce off a combination of its 200-day
moving average and its broken resistance level from June 2000. It remains to be
seen, however, whether this will amount to anything more than that.
Eddie