Tuesday, February 06, 2007
Technical Indicators
Directional Movement
Index (ADX)
Directional Movement helps determine if a security is
"trending." Developed by Welles Wilder and explained in his book, New
Concepts in Technical Trading Systems, it can be used either as a system on its
own or as a filter on a trend-following system.
Two lines are generated in a DMI study, +DI and -DI. The first line measures
positive (upward) movement and the second number measures negative (downward)
movement. A buy signal is given when the +DI line crosses over the - DI line
while a sell signal is generated when the +DI line crosses below the - DI line.
Read More...
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NASDAQ Chart of the Day
GOOG
got a big downside break from the large triangle range at 480.00 today and is
poised to head much lower. Given the geometry of the triangle, this stock could
move about 60 points from the breakout point, which puts the target at about
420.00.
Daily Trading Signals
NYSE Chart of the Day
UCO
got a big upside break through a major resistance level at 65.40 via a large breakaway
gap and increased volume. Look for more strength from this stock above 65.40.
Daily Trading Signals
Daily Market Commentary
Updated Monday, 2/5 for Tuesday's market.
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Key DOW Levels for 2/6
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P
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Above 12,700
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DN
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Below 12,620
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Still Holding...
- Dow trades quietly sideways throughout session, builds out tight
consolidation. The index has done a good job so far in holding above the major
12,600 resistance level, but we also need to see more bullish movement ahead.
Otherwise, the index is still vulnerable to another potential sell-off.
- The NASDAQ and S&P each continue to hold within their respective
consolidation ranges. Each looks to be gearing up for another big move, but
look as though they are favoring a downside break. Watch the current ranges for
key direction tomorrow.
Summary
The Dow continues to hold at the overall highs above the key 12,600 resistance
level. The index has managed to hold above this zone for three straight days,
which is promising looking forward. Continue to watch the key 12,620 zone for
clear direction.
Read More...
