TradingMarkets Chart of the Day
For today’s Chart of the Day, let’s take a look at the
Stocks Ready To Surge list published each day on the
Indicators
page. 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. They are
sorted in rank according to how over-extended they are vs. their 10-day moving
average. These stocks are simple pullback trades, as we look for a
trending stock to move against its trend, usually resulting in a reversal
continuation move.
Allied Waste
(
AW |
Quote |
Chart |
News |
PowerRating)
has been trending nicely above its 200-day moving average (red line) since
the end of September of this year. On November 9, 2006, AW made new
6-month highs at $13.62.
In the last few sessions, AW has been consolidating in a narrow range. Watch for
AW to potentially bounce back from this
slide as the stock resumes its uptrend.
Pullbacks are one of the simplest and most powerful ways to
trade; use your knowledge of the trend to get a better entry price.