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The ART Of
The CHART By Joseph E.
This book guides you through the fundamental "need to
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Alexion, Goldman Sachs, Eli Lilly, Visa
Stock Focus List 01-05-2013 Published WEEKLY on Saturday 12:00pm
GOAL of this Analysis: > Identify stocks with positive technical indicators trading close to their Pivot Point.
CRITERIA for selection include: - Trade on NASDAQ & NYSE - Trade 500,000 + shares per day - Trading above 20 & 50-day moving average (dMA) - Challenging BASING Stage overhead resistance or transitioning to early phase ADVANCING Stage - Close to Pivot Point (ideal buy price) - no more than 5% above pivot - Relative Strength Index (RSI) above 50-centerline but below 70 (70 + considered extended) - Heavy (2x) or Surging (3x) Volume - Positive Momentum (MACD) - Stock fundamentally sound as researched on Inv. Business Daiy STOCK CHECKUP with composite of 80 + - Do NOT hold security overnite into earnings as high volatility in price swings may occur
The 4 Market Stages are: Basing, Advancing,Topping & Declining
Current Stage: ADVANCING Phase
Definition of a Pivot Point: > The price that is $0.10 (10 cents) above the most recent resistance (intra-day high).
> Another way of stating this is: The Pivot Point is the spot where a rising stock faces the final level of overhead resistance. Once it trades above this level, there is greater probability the stock may rise as sellers whom wanted to sell have been shaken out (or concluded their selling).
> A Pivot Point may be referred to as the Ideal Buy Price.
Definition of a Breakout: A breakout occurs when a stock makes a NEW HIGH OVER PREVIOUS RESISTANCE HIGH WITH SURGING VOLUME - volume to be at least 50% above average and ideally 2x and greater. A new high over previous high with average or light volume does not constitute a breakout. Heavy volume MUST support the move.
Note: Securities that breakout might be pressured to pullback into a base and possibly re-test support levels. In an upward biased / BULL MARKET, breakouts typically gain substantial momentum. In a downward biased / BEAR MARKET > not a buy & hold environment. MUST monitor often & employ a stop loss limit.
Disclaimer - Principal goal of this information: Material is provided for EDUCATIONAL & EVALUATIVE PURPOSES only and does not constitute a recommendation or endorsement to buy, sell or hold with respect to any security or investment. Chart analysis is an interpretation and subjective process. There are no guarantees the stocks presented will perform in the manner of the interpretation as many factors can affect performance.
Charts Courtesy StockCharts.com Composed By SelectiveChartists
Copyright 2012 Selective Chartists, LLC. All Rights Reserved.