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. T
hese
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 picks are simple pullback trades; they are downtrending stocks that have
pushed up against their moving average/ general direction.

Black &
Decker

(
BDK |
Quote |
Chart |
News |
PowerRating)
has been trading below its 200-day moving average
since price broke support near the beginning of June. This stock is
considered weak because it is trading below its long-term trending price.
Over the last few days, BDK has made a serious attempt at a rally, gaining over
5 pts. to get near its moving average. Watch for this rally to fail and
for price to fall over the next few days, as the rally against the trend fails.

Remember: Use your knowledge of the trend to get better
entries on stocks that are fighting their own momentum.