Tuesday, October 5, 2010

Chart of the Day

There were two criteria that today's Chart of the Day had to fulfill - (1) it should be from the financial sector, as it was financials that led the market higher today (2) should not be very far from the MA(20). And this is what led me to DFS. Nice bullish volume pattern the last couple of weeks. MA(20) was tested and held up yesterday, always a bullish sign for a stock in uptrend in my book.

What makes the stock even more interesting is the weekly chart. The stock has been stuck in a trading range for over a year now and managed to close just above it today. A weekly close above this range would be really bullish.

Another stock that I would like to point out here is AXP. It has had a miserable last week and finds itself at a major support level. Watch out for the stock at this level, it could make for a nice long or short depending on how things go!

From earlier today - Are markets overbought here?

Take care and good luck!

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