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.
Houston Exploration
(
THX |
Quote |
Chart |
News |
PowerRating)
has been trading in a downtrend since the middle of September, when price broke
support at its 200-day moving average and began trading below the average. Over the last few days
THX has pulled back towards its moving average, rallying
nearly 4 points off the low. Watch for price to resume its trend downwards over the
next few days, as the weight of the moving average and the power of the trend
forces the stock to continue lower.
Remember: Use pullbacks to get a better entry on a trending
stock.