TradingMarkets chart of the day
For today’s Chart of the Day, let’s take a look at the
Pullbacks From Lows list published each day 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.
Whole Foods Market Inc.
(
WFMI |
Quote |
Chart |
News |
PowerRating)
has recently gapped down, breaking support at its 200-day moving average. Over
the last few sessions WFMI has pulled back up towards its moving average, rallying
close to 5 points off the low. Watch for price to resume its trend downwards
over the next few days as the power of the trend
forces the stock to continue lower.
Remember: Use pullbacks to get a better entry on a trending
stock.