TradingMarkets Chart of the Day
For today’s Chart of the Day, let’s take a look at the
Stocks Ready To Surge list from the Indicators page. These are the
stocks 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.
Simply understood, these are stocks that are in an uptrend and have issued a
pullback towards their moving average.
Ashland
(
ASH |
Quote |
Chart |
News |
PowerRating) is
trading in a confirmed uptrend, as the stock price is resting above the
200-day moving average (MA). This stock has been pulling back towards
its MA since the beginning of August; two days ago price broke support at the
50-day MA. Yesterday ASH made new lows, broke support, and rallied to
close near the top of its range. Watch for price to bounce as the
200-day MA offers support and the stock attempts to start moving up again.
Always Remember:
Pullbacks are great. By knowing the direction of the trend, traders can
get a better price on the buy-in before the trend resumes.