TradingMarkets Chart of the Day
For today’s Chart of the Day, let’s take a look at the
Stocks Ready To Surge list that is published everyday on 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. We are looking for stocks that are trending up that have made new
lows in the past few days. These stocks have historically outperformed the
markets over the next few days, as price corrects in the direction of the trend.
CVS Corp
(
CVS |
Quote |
Chart |
News |
PowerRating) is
trading above its 200-day moving average in a confirmed uptrend. CVS is
currently in a deep pullback, making consecutive new lows. Watch for this
stock to correct its price, and pop back in the direction of its trend.
Price has about 2 whole points to wiggle before meeting resistance at the old
highs around $35.
Pullbacks offer traders a great opportunity
to get into a trending stock at a better price!
John Patrick Lee