Thursday, January 11, 2007
Technical Indicators
Accumulation/Distribution
Line
The Accumulation/Distribution Line was developed by Marc Chaikin
to assess the cumulative flow of money into and out of a security. He decided
to focus on the price action for a given period (day, week, month) and derived
a formula to calculate a value based on the location of the close, relative to
the range for the period. This is the "Close Location Value" or CLV.
The CLV ranges from plus one to minus one with the center point at zero.
The signals for the Accumulation/Distribution Line are fairly straightforward
and involve divergence or confirmation. A bullish signal is given when the
Accumulation/Distribution Line forms a positive divergence. Be wary of weak
positive divergences that fail to make higher reaction highs. A two-week
positive divergence should be suspect. However, a multi-month positive
divergence deserves serious attention...
Read More...
Trading Ideas &
Picks
Occidental Petroleum Corp - OXY - Below
an influential trendline
OXY:
Recent weakness in the oil and gas sector has caused the stock to fall below an
influential trendline on above average volume. The ascending trendline has been
able to provide support for OXY since early 2004, but the recent break below
suggests that we could see a further pullback...
Trading
Picks - Read More
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.
Read More...
NASDAQ Chart of the Day
IVGN
is getting a solid upside break through the top of a clear triangle
consolidation at 57.75, which is quite bullish. Watch for continued strength
out of this pattern.
Daily Trading Signals
NYSE Chart of the Day
DNR
is holding at major support at 25.95, which has held for many months. Watch
this level for a big break or bounce for the next key move. Watch 27.25 up, and
25.75 down.
Daily Trading Signals
Daily Market Commentary
Updated Wednesday, 1/10 for Thursday's market.
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Key DOW Levels for 1/11
|
|
P
|
Above 12,475
|
|
DN
|
Below 12,350
|
Reversal from Lows...
- Dow bounces higher from key support yet again, but remains
within tight consolidation range. The index reversed course and rallied slowly
to the Close to end the day with a 26 point gain.
- The NASDAQ continues to lead the way higher, but the broader market has been
reluctant to push in either direction over the last four or five days of
trading. Look for the NASDAQ to remain strong with the S&P finally agreeing
with move.
Summary
The Dow ended the day with a nice rise from the session's lows after being
rebuffed by key support at 12,350 yet again. Look for the index to finally get
a big breakout opportunity through 12,465 tomorrow.
Read More...
