Friday, August 24, 2007
The Lowdown on
Bottoms
Bottoms
print as a result of market physics. Uptrends and downtrends exhibit natural
wave motion as they thrust forward, and they pull back to test gains or losses.
This action-reaction becomes very important at market turning points. It
implies that a reversal pattern will appear at some point in each trend. In an
uptrend, a lower high will eventually follow a higher high and mark a new top.
In a downtrend, lower lows will finally stop when price action prints a higher
low. This marks the birth of a bottom.
Read More...
Trading
Education Tutorial
Courtesy of Nirvana Systems
Volume Climax
Volume Helps Identify Reversals
Various price patterns can alert us to potential
reversal candidates. Trendline Breaks, Support and Resistance Levels, Fibonacci
Retracement Levels and other price information are valuable in determining a
change in direction for a security. However, one of the most overlooked chart
patterns that help us determine reversals is not reflected in the price itself.
Volume climaxes are easily identifiable and valuable in assessing a change in
market sentiment.
Read More...
NASDAQ Chart of the
Day
Courtesy of Nirvana Systems
REGN has formed a clear inverted
head-and-shoulders pattern at the lows of the Summer decline. The neck line
(resistance) is clearly defined at 19.00 and makes for a very solid fulcrum in
the charts. A break above this level will likely lead to key strength, while a
failure will lead to another big round of selling. Watch it closely.
Daily Trading
Signals
NYSE Chart of the Day
Courtesy of Nirvana Systems
NBR has thrown some big reversal
tails at the key 27.20 support level, which has held firm since last Fall. If
NBR can continue to hold above 27.20, we could see another nice rally toward
the Summer highs.
Daily Trading
Signals
Daily
Market Commentary
Courtesy of Nirvana Systems
Updated Thursday, 8/23 for Friday's market.
|
Key DOW Levels for 8/24
|
|
UP
|
Above 13,500
|
|
DN
|
Below 13,000
|
Quiet Session...
- Dow opens session with promise, but closes flat
for the day. From prior commentary, "...While the Dow has picked up a considerable
amount of points along the way, today's upside break through 13,200 does not
lend confidence to the bulls...a break back below 13,150 could give us an early
sign of weakness..."
The Dow opened the session with a fair bit of strength this morning, but the
index quickly reversed course and settled into a very tight range, as seen in
the 15 Minute Chart. The index basically traded sideways the entire session and
eventually closed flat on the day. The Dow continues to near the highs of the
six-day uptrend, but does not look poised to head higher.
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