Thursday, June 21, 2007
Trading Ideas &
Picks
American Electric Power Co- AEP -
Testing the support levels
AEP -
Today's decline was stopped by the combined support of the 200-day moving average and
a twelve-month trendline.
Technical traders will keep a close eye on this stock at current levels because
two consecutive closes below the mentioned support will cause many speculators
to lower their price targets to $38.50...
Trading
Picks - Read More
Trading Ideas &
Picks
Swing
Trade of the Week
INSP:
Stock's bearish gap down in mid May put this stock into a downtrend. Stock has
since rallied up to the downtrending MAs where it has found initial resistance.
Look to go short at 22.89...
Trading
Ideas - Read More
Technical Indicators
Zig Zag
The Zig Zag indicator shows past performance trends and only the
most significant changes. It does this by filtering out any changes less than a
specified amount.
The Zig Zag indicator is used primarily to help you see changes by highlighting
the most significant reversals. Understand that the last segment in a Zig Zag
chart can change based on changes in the underlying plot, price being only one
example. That is, a change in a security's price can change a previous value of
the indicator. Since the Zig Zag indicator adjusts its values based on subsequent
changes, it has perfect hindsight into what prices have done. Do not try to
create a trading system based on the Zig Zag indicator, as it to be used to
illustrate historical patterns.
The Zig Zag indicator is calculated by placing imaginary points on a chart when
prices reverse by at least the specified amount. Straight lines are then drawn
to connect these imaginary points. Any changes in prices that are less than the
specified amount are ignored.
Read More...
Trading Education Tutorial
Courtesy of
Nirvana Systems
Trendline Breaks
When is a Trend Truly Broken?
The importance of trendlines cannot be overstated when it comes to
technical analysis. We are told to trade with the primary trend, exit when the
trend reverses, enter on trend reversals, and so on. Trends are easy enough to
identify, but when is a trend actually broken?
Read
More...
NASDAQ Chart of the Day
Courtesy
of Nirvana Systems
FTEK
took a big upside break through major resistance at 30.00, which had held
firmly over the last five months. This breakout could spark much more strength
ahead, especially if 30.00 remains in tact.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
BW
has taken a big breakaway gap to the downside through the bottom of a clear
triangle range on increased volume, which is a bearish combination. Look for
more weakness from this stock, likely back toward the 31.00 range.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Wednesday, 6/20 for Thursday's market.
|
Key DOW Levels for 6/21
|
|
UP
|
Above 13,700
|
|
DN
|
Below 13,400
|
Late-Day Sell-Off...
- Dow holds within consolidation throughout session, but sells off
late in the day. The index finally got a big downside break from the pattern at
13,570 and dropped hard to the Close for an eventual 146 point loss.
- The NASDAQ and S&P each broke clear ranges to the downside late in the
day, making key selling pressure. Watch for more weakness beneath the bottom of
these ranges.
Summary
The Dow ended the day with clear selling pressure after breaking the key
consolidation to the downside. More downside movement could be seen within the
larger range, but watch 13,600 for any snap-back reactions.
Read More...
