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.
Coventry Health Care Inc.
(
CVH |
Quote |
Chart |
News |
PowerRating)
has been trading below its 200-day moving average since the middle of September,
which tells us that it is currently in a downtrend. Over
the last few sessions CVH has pulled back up towards its moving average, rallying
close to 6 points off the recent 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. Watch for CVH to
potentially resume its downtrend in the next week.
Remember: Use pullbacks to get a better entry on a trending
stock.