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 trades. We look for downtrending
stocks and wait for a pop, and take advantage of a better buy-in as the stock
resumes its original direction.
Dell
(
DELL |
Quote |
Chart |
News |
PowerRating) has been
trading in a confirmed downtrend for nearly a year, trading below its 200-day
moving average. Over the last two weeks, price has risen nearly 10% to
push up towards its moving average. Watch for this rally to fail, as the
weight of the moving average pressures price into moving back into the original
direction of the trend.
Use pullbacks to get a better price on your buy-in on a
trending stock.