Thursday, May 03, 2007
Bullish Reversal Triggers
Reversal bars are an objective technique used to time the entry of a trade. Read More... http://daily-stocks.netfirms.com/daily-trading-triggers.htm
Pattern Cycles:
Breakouts
Significant declines evolve into long bottoms
characterized by failed rallies and retesting of prior lows. As new accumulation
slowly shakes out the last crowd of losers, a stock's character changes. Prices
push toward the top of key resistance. Short-term relative strength improves
and the chart exhibits a series of bullish price bars with closing ticks near
their highs. Finally the issue begins a steady march through the wall marked
with past failures.
Stocks must overcome gravity to enter new uptrends. Value players build bases
but can't supply the critical force needed to fuel rallies. Fortunately, the
momentum crowd arrives just in time to fill this chore. As a stock slowly rises
above resistance, greed rings a loud bell and these growth players jump in all
at the same time...
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More...
Trading Education
Tutorial
Courtesy of
Nirvana Systems
Double Tops and Bottoms
Waiting for the Setup to Complete Results in Profits
There are various chart patterns that help us find good reversal
candidates. Of the major reversal patterns, the double top or bottom is not
only one of the most recognizable, but also one of the most predictive.
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More...
NASDAQ Chart of the Day
Courtesy
of Nirvana Systems
PWAV
has formed a large inverted head-and-shoulders pattern at critical support at
4.80, which has held for five years. An upside break through the neck line
(resistance) at 6.80 could spark a very nice rally in this stock.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
CBG
has taken a big gap to the upside through the top of a large triangle pattern,
which could spark key buying pressure ahead. If the stock can hold above the
breakout point of 37.00, we could see a move toward highs of about 45.00.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Wednesday, 5/2 for Thursday's market.
|
Key DOW Levels for 5/3
|
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UP
|
Above 13,300
|
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DN
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Below 13,025
|
Steady Advance...
- Dow rallies throughout session, holds gains to the Close. The
index pulled back from the session's highs late in the day, but still managed
to hang on to a nice 76 point gain for the day, which is another all-time
record close. However, a potential head-and-shoulders pattern could halt
current momentum.
- The NASDAQ and S&P each rallied out of the gate today, but held firmly at
resistance, where potentially bearish patterns are now forming. Further overall
strength is likely, but a pull-back could happen first.
Summary
The Dow ended the day with a nice gain today and is now holding above key
resistance. The index remains highly bullish, but the formation of the intraday
head-and-shoulders pattern could lead to a near-term retracement tomorrow.
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