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
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. We turn to this list again (we looked at it yesterday) because
the overall dynamics of the market have not changed, and these stocks look to
move the most.
New Century
(
NEW |
Quote |
Chart |
News |
PowerRating) has
been trading below its 200-day moving average since the beginning of August,
signaling a confirmed downtrend. At the beginning of September, price made
new lows, and then immediately pulled back towards its moving average.
Watch for this rally to fail as price gets closer to resistance, and the force
and momentum of the trend pushes this stock lower.
Use pullbacks to get a better price on your buy-in on a
trending stock.
John Patrick Lee