Sunday, September 26, 2010

Chart of the Day

The main criteria for today's chart of the day was that the stock should not be overextended. There are a lot of bullish setups out there that look great but most of them had a nice run up on Friday. Another criteria was though the stock should not have run up big (yet!), it should not have had a down day on Friday. A stock that can't go up when the market is up 200 points is, well...Now that you readers understand where I am coming from, let's get on with today's pick - BVF. The stock has undergone a decent period of consolidation since the last big move up. MA(20) has constantly acted as support since June and the stocked bounced nicely off the same moving average on relatively big volume on Friday. A stop below MA(20) should do the trick.

Take care and good luck!

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