TradingMarkets Chart of the Day
For today’s Chart of the Day, let’s take a look at the
Stocks Ready To Drop page from the TradingMarkets
Indicator
Page. Stocks Ready To Drop are stocks that today made new 10-day highs
that are still in an downtrend as they are trading below their 200-day moving
average. To put it more simply, these are weak stocks that are trying to
stage a rally against the MA resistance. Usually, the move will fail as
the stock moves closer to the MA, allowing traders a better buy-in as the stock
continues trending downward.
Freeport-McMoran Copper & Gold
(
FCX |
Quote |
Chart |
News |
PowerRating) crossed over its 200-day MA in the middle of June, confirming a new
downtrend that started after the highs around $59.30. After establishing
the downtrend, FCX has attempted two push up to the MA twice, and both attempts
have failed. FCX is currently trading right beneath resistance around $55
after making new 10-day highs, so watch for this stock to fall as it resumes its
downward trend.
In the days to come we’ll show you more indicator examples on
both the long and short side. I’ve enjoyed showing you this Chart of the Day,
please feel free to email me at johnl@tradingmarkets.com if you have any
questions or comments.
John Patrick Lee