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.
Emerson Electric
(
EMR |
Quote |
Chart |
News |
PowerRating)
has been trending nicely above its 200-day moving average (red line) since
November of 2006. This past week EMR made a new 10-day low and is now starting
to move back upwards. Watch for EMR 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.