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 TradingMarkets
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. For
example, the top ranked stock is trading the furthest distance from its 10-day
moving average on a percentage basis. Historically, these stocks on average have
had larger than normal short-term upside reversals.
Moody’s
(
MCO |
Quote |
Chart |
News |
PowerRating) has been trading above its 200-day simple moving average since
10/11/06, identifying a solid uptrend. On 12/6/06, MCO made nearly 7-month
highs, pushing up against resistance from April. MCO has since fallen off
those highs, opening at a 10-day low on Monday, December 18. Watch for MCO
to recover from this pullback in the coming days and continue in the direction
of the trend.
Remember: TradingMarkets teaches you to trade pullbacks; use
your knowledge of the trend to get a better buy-in price before the stock
resumes direction.