TradingMarkets Chart of the Day
For today’s Chart of the Day let’s take a look at the
Pullbacks From Lows list published everyday by TradingMarkets on the
Indicator
page. Most successful momentum-based traders and money managers like to
sell weak stocks after they pull back. TradingMarkets.com uses a proprietary
mathematical model to identify up to 20 (in strong or choppy markets there will
be fewer) weak stocks that have pulled back from recent lows. These stocks
should be considered potential candidates to resume their longer-term
downtrends.
On August 1st, Brinker International
(
EAT |
Quote |
Chart |
News |
PowerRating) made 1-year lows at $31.48. Over the last few days, EAT has
issued a pullback, moving against the direction of the current downtrend.
As EAT moves closer to the 200-day moving average, watch for a reversal move and
a continuation in the direction of the current trend.
Always Remember: When a
strongly trending stock moves against the direction of the trend, take advantage
of the better price to buy-in on the reversal move into the direction of the
trend.