TradingMarkets Chart of the Day
For today’s Chart of the Day, let’s take a look at the
Pullbacks From Lows list published each day on the TradingMarkets
Indicators
page. Most successful momentum-based traders and money managers like to
sell weak stocks after they pull back. TradingMarkets.com uses a proprietary
mathematical model to identify up to 20 (in strong or choppy markets there will
be fewer) weak stocks that have pulled back from recent lows. These stocks
should be considered potential candidates to resume their longer-term
downtrends.
Checkfree Corp
(
CKFR |
Quote |
Chart |
News |
PowerRating)
has been in a confirmed downtrend since the beginning of July, when price broke
support at the 200-day simple moving average. This means that this is a
weak stock. On August 24, CKFR made new 1-year lows. Immediately
after hitting the new lows, price made an effort at a rally, pushing price a few
points higher over the next few days. Watch for CKFR to resume its
downtrend, as the weight of the moving average pushes down on price, restricting
this rally.
Use pullbacks to get a better price on your buy-in before the
stock resumes its trend.