Wednesday, November 22, 2006
Trading Education
Tutorial
Trading Ranges
Big Moves Occur Outside of the Range
A trading range is basically a horizontal channel in which a security moves
from the high and low of the channel for an extended amount of time. Obviously,
the upper level of the range can be considered resistance and the lower level
represents support. Trading within a range is possible, but it's the breakout
from the range that provides the best opportunities.
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NASDAQ Chart of the Day
PHRM has formed a tight consolidation at the highs of the recent advance
from 23.55 to 25.95. A breakout from this range should spark the next clear
move in this stock
Daily Trading Signals
NYSE Chart of the Day
DHI
is holding beneath a major resistance level at 25.55, which has held since
June. Watch this level for a solid break or bounce.
Daily Trading Signals
Trading Ideas &
Picks
Runaway Moves (Gann)
In our last article, we focused on W.D. Gann's
innovative brand of price and time analysis, especially as pertaining to the
time periods of measured corrections. So-called "runaway moves" comprise a
unique and highly profitable subset among time periods, affording the alert
speculator the greatest opportunity to profit in the shortest time. During
these dramatic moves, options prices traditionally experience their greatest
increases in value...
Trading
Picks - Read More
Daily Market Commentary
Updated Tuesday, 11/21 for Wednesday's market.
|
Key DOW Levels for 11/22
|
|
UP
|
Above 12,400
|
|
DN
|
Below 12,250
|
In the Range...
- Dow trades quietly sideways throughout session, remains within
key range. The index ontinues to hold above the 12,280 level and continues to
build out a potential consolidation range.
- The NASDAQ and S&P each pushed slowly sideways today within their
respective ranges, which will likely persist the next couple of days. Continue
to watch the key ranges for big movement.
Summary
The Dow closed the day with a mild gain after trading basically sideways throughout
the session. The index continues to build out at the highs above 12,280, which
indicates continued overall strength. However, watch the Dow's range for key
near-term direction.
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