TradingMarkets Chart of the Day
For today’s Chart of the Day, let’s take a look at the
Pullbacks From Highs list published each day on the
Indicators
page. Most successful momentum-based traders and money managers like to
buy strong stocks after they pull back. TradingMarkets.com uses a proprietary
mathematical model to identify up to 30 (in weak or choppy markets there will be
fewer) of the strongest stocks that have pulled back from recent highs. These
stocks should be considered potential candidates to resume their longer-term
uptrends.
ITC Holdings
(
ITC |
Quote |
Chart |
News |
PowerRating) has
been trading above its moving average since the end of July, and has staged two
major rallies during the latter part of summer. This is strong, uptrending
stock. In late August ITC hit its high around 34.50, and subsequently
pulled back towards its moving average. Watch for ITC to make another
move, after gaining strength during this “rest” period after a strong run-up.
This is a strong stock and should be able to continue upwards.
Remember: TradingMarkets teaches you to trade pullbacks; use
your knowledge of the trend to get a better buy-in price before the stock
resumes direction.