Friday, February 02, 2007
Trading Education
Tutorial
Trendlines
Determining Market Reversals and Continuations
Trendlines are perhaps the oldest tools known to chartists.
Trendlines form across peaks and valleys called pivot points - relative highs
and lows in a chart. As more points form along a line, it becomes more
"established". This means that, when the line is broken, it will
likely follow through with a strong move in the new direction.
Read More...
NASDAQ Chart of the Day
CDNS
got a big upside break through the top of a solid consolidation pattern at
19.20 and is now peaking at new highs. Look for more strength from this stock
above 19.00.
Daily Trading Signals
NYSE Chart of the Day
ADM
took a big breakaway gap to the upside through a couple major upper trend lines
and with increased volume, which is highly bullish. Look for continued strength
from this stock, especially if it remains above 34.00.
Daily Trading Signals
Daily Market Commentary
Updated Thursday, 2/1 for Friday's market.
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Key DOW Levels for 2/2
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P
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Above 12,725
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DN
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Below 12,500
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Late-Day Strength...
- Dow holds throughout session, gets bullish lift to the Close.
The index even got a slow, but steady move higher to the Close to end the day
with a solid 52 point gain, which continues to extend its gains above key
resistance.
- The NASDAQ and S&P each pushed slowly higher late in the afternoon, but
once again, the NASDAQ lagged the broader market averages. The tech-heavy index
continues to hold way short of prior highs, whereas the S&P and Dow
continue to push to new highs. Watch this index to key movement ahead.
Summary
The Dow closed the day with a modest rally today, which pushed the index to
another all-time record closing high. The index continues to hold above the key
12,600 zone, which is quite bullish heading forward. However, watch this zone
closely, as a break could bring a swift end to the current rally.
Read More...
