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 easy pullback trades; we watch for a strongly trending
stock to move against its current direction, and take advantage of a better
buy-in price.
eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating) has been
trading below its 200-day moving average in a confirmed downtrend since March.
This is an extremely weak stock. Yesterday ebay rallied over 5%, and today
that rally looks to extend even further. Watch for EBAY to fall back into
the direction of the trend, as the pullback fails and price resumes its original
direction.
Use pullbacks to get a better price on your buy-in of a
trending stock.