Tuesday, March 13, 2007
Trading Education
Tutorial
Courtesy of
Nirvana Systems
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.
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NASDAQ Chart of the Day
Courtesy
of Nirvana Systems
FRED has reached major resistance yet again at around 15.20, as this
level has been a major hurdle for the stock for a year. Watch for another round
of selling to arise from this zone, unless resistance can finally be broken.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
PLT
is getting an upside breakout through the top of a large converging range via a
breakaway gap. Look for more strength out of this stock in the days to come.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Monday, 3/12 for Tuesday's market.
|
Key DOW Levels for 3/13
|
|
UP
|
Above 12,350
|
|
DN
|
Below 12,200
|
12,350 Holds...
- Dow rises slowly to 12,350, sells off to the Close. The index
kissed the level before dropping steadily to the Close, ending the day with a
42 point gain.
- The NASDAQ and S&P each traded back and forth throughout the session and
continue to build out large triangle ranges. These ranges could continue to
build out ahead of a potential breakout move.
Summary
The Dow ended the day with a gain after pushing slowly higher throughout much
of the session. However, the key 12,350 resistance level rejected the index
again and continues to play a major role as a fulcrum. Continue to watch this
zone for the next key break or bounce.
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Trading Education
Tutorial
Courtesy of
Nirvana Systems
Measured and Exhaustion Gaps
Identifiable
Patterns After Confirmation Move
We have previously mentioned the three types of gaps that are of
relevance to investors - the breakaway gap, the measured (or continuation) gap,
and the exhaustion gap. We previously discussed the breakaway gap, but it is
important to discuss the measured gap and exhaustion gap at the same time. Why?
Because it is difficult to tell one from the other until after the fact.
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