TradingMarkets Chart of the Day

  • February 23, 2007
  • Darren Wong

These are stocks that have gained 10% or more over the past
five days and are trading below their 200-day moving average. Our
research shows that stocks trading below their 200-day moving average that have
gained 10% or more over the past five days have shown negative returns, on
average, 1-week later. Historically, these stocks have provided traders
with a significant edge. To learn more about our research into stocks that have
that have lost 10% or more over the past five days, and how to use this
information,

click here.

Warner
Music Group
(
WMG |
Quote |
Chart |
News |
PowerRating) has been trading below its 200-day moving average since 12/01/06,
showing us that it has been trending downwards. 

Click here for detailed research on the 200-day moving average by Ashton
Dorkins and Larry Connors.  In
Thursday’s session (02/22/2007), WMG moved up for the fourth straight session. Watch for price to
potentially move back downwards over the next few days.