Today's Chart of the Day is JASO, a solar stock. Last week, the stock gapped up above 6.90. If you look at the chart, 6.90 was a very important resistance level as the stock had been rejected twice there earlier in the year. The breakout was on very good volume (In fact, this action is a very good illustration of what I had explained in the post "How to play gap ups?"). The stock has since then formed an ascending triangle on lower volume with resistance at 7.50. I like it at the break of this level with volume.
I will be back with posts on stocks to watch out for tomorrow and what we could expect next week.Its been a busy weekend for the blog with posts on sector analysis, how to select stop losses in these days of trading algorithms and checking if the markets are overbought or not. Have a look if you haven't done so already!
Take care and good luck!