Thursday, May 24, 2007
Trading Ideas &
Picks
Allegheny Technologies Inc- ATI -
Ascending channel pattern
ATI
- The two parallel trendlines
have acted as areas of support and resistance in the past and it will be
interesting to see if this story will continue. Technically speaking, the the
trend is expected to remain upward until the price falls below $110.60, but we
believe that a pullback may happen sooner than most expect...
Trading
Picks - Read More
Trading Ideas &
Picks
Swing
Trade of the Week
CME:
The stock entered into a Moving Average downtrend with the 20 EMA crossing over
down through the 50 EMA. The stock confirmed the downtrend by reversing at the
50 EMA to move and consolidate under the 20 EMA. Go short to take advantage of
the recent rise the Moving Averages in an overall downtrending stock...
Trading
Ideas - Read More
Five Fibonacci Tricks
Fibonacci jumped into the technical mainstream
late in the bull market. Futures traders had it all to themselves until
real-time software ported it over to the equity markets. Its popularity
exploded as retail traders experimented with its arcane math and discovered its
many virtues.
Fibonacci ratios describe the interaction between trend and countertrend
markets -- 38%, 50% and 62% retracements form the primary pullback levels.
Apply these percentages after a trend in either direction to predict the extent
of the countertrend swing. Stretch a grid over the most obvious up or down
wave, and see how percentages cross key price levels.
Convergence between pattern and retracement can point to excellent trading
opportunities. Keep in mind that retracements work poorly in a vacuum. Always examine
highs, lows and moving averages to confirm the importance of a specific
level...
Read
More...
Trading Education
Tutorial
Courtesy of
Nirvana Systems
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
Courtesy
of Nirvana Systems
FFIV
has been holding at the year's highs beneath major resistance at 80.75 since
January. If FFIV cannot rise above this zone, we could see a big sell-off ahead
from these levels, likely toward the year's lows.
Daily Trading Signals
NYSE Chart of the Day
Courtesy
of Nirvana Systems
MGM
took a large gap up yesterday on high volume, but hasn't been able to advance
since. Given the large gap and the big spike in volume, we could see a volume
climax reversal to the downside if 78.00 is crossed.
Daily Trading Signals
Daily Market Commentary
Courtesy of
Nirvana Systems
Updated Wednesday, 5/23 for Thursday's market.
|
Key DOW Levels for 5/24
|
|
UP
|
Above 13,650
|
|
DN
|
Below 13,500
|
More Late-Day Selling....
- Dow sells off from highs, drops into the Close. The index has
sold off into the Close for the third straight session, but today's decline was
much steeper, which could make for more weakness ahead.
- The NASDAQ and S&P each sold off heavily from the day's highs, but each
stopped at key support levels, which we will watch closely for tomorrow's
movement.
Summary
The Dow closed the day with another loss of 14 points after crossing the 13,600
zone earlier in the day. Watch 13,500 closely for signs of key weakness
tomorrow.
Read More...
