TradingMarkets Chart of the Day
For today’s Chart of the Day, let’s take a look at the
Stocks Ready To Drop list, published each day on the
Indicators
page. These are the stocks that today made new 10-day highs that are still
in an downtrend as they are trading below their 200-day moving average. They are
sorted in rank according to how over-extended they are vs. their 10-day moving
average. These are simple pullback opportunities; we look for a strongly
trending stock and then take advantage of a better price that occurs when the
stock pushes hard against the trend.
Agilent Technologies
(
A |
Quote |
Chart |
News |
PowerRating)
has been trading below its 200-day moving average since the beginning of June.
On September 21, stock price made new multi-month highs, a strong move in the
direction against the trend. Watch for A to resume its downtrend, as the
pressure of the moving average and the force of the trend lead the stock to move
lower.
Remember: Use pullbacks to get a better buy-in price on a
strongly trending stock.