TradingMarkets Chart Of The Day
Each day on the
Indicators
page, TradingMarkets publishes a list of stocks called
Stocks Ready to Surge. These are the stocks that today made new 10-day
lows that are still in an uptrend as they are trading above their 200-day
moving average.
Historically, these stocks on average have had larger than normal short-term
upside reversals. This scan highlights stocks that are pulling back
against their average. When an up-trending stocks has a few down days,
expect some kind of reversal move to allow the stock to continue in its trend.
CSX Corp
(
CSX |
Quote |
Chart |
News |
PowerRating) is in a
defined uptrend, as the stock is sitting above its 200-day moving average.
On 7/26 we see the stock making new 10-day lows, setting up for a pullback.
Expect
(
CSX |
Quote |
Chart |
News |
PowerRating) to pull a reversal move, as this stock’s moving average will
exert support onto price. The new 10-day low should also act as support
for price, so watch for a continuation move as the stock gets back into gear
moving with its 200-day moving average.
Always Remember:
Identify pullbacks by establishing the trend and looking for an extended move
against the trend. Stocks act like rubber bands–they get extended and
snap back quickly. Profit from the market by capitalizing on the snap
backs, which act like corrective moves.