Thursday, December 14, 2006
Trading Education
Tutorial
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.
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NASDAQ Chart of the Day
SNTS
got a nice breakout from a large triangle range via a breakaway gap, which is a
bullish signal. Look for continued strength from this pattern toward 10.00.
Daily Trading Signals
NYSE Chart of the Day
JCI has formed a large consolidation at the highs of the latest advance
and is likely approaching a breakout soon. Watch 85.00 up and 80.00 down for a
potential 10 point move.
Daily Trading Signals
Daily Market Commentary
Updated Wednesday, 12/13 for Thursday's market.
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Key DOW Levels for 12/14
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P
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Above 12,375
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DN
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Below 12,250
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Still Holding...
- Dow continues holding within clear consolidation range, holds at
resistance. The index eventually closed the day with a mild 2 point gain, but
continues to wind up for the much bigger breakout move.
- The NASDAQ and S&P each began the day strong, but immediately pulled back
from highs. Look for a more solid breakout with follow-through tomorrow.
Summary
The Dow continues to wind up within the large consolidation pattern, which we
will continue to watch closely. Look for more range movement until this pattern
is solidly broken.
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