Thursday, November 4, 2010

Chart of the Day

Today's Chart of the Day is REE. What an uptrend! MA(20) has been constant support throughout this move. 10.84 has proved to be a resistance during the last three days. It can either be bought as a breakout play on a move over 10.85 or a pullback to MA(20). If you plan of playing it as a breakout play, be sure to confirm that the move is accompanied by heavy volume. A stop little distance below MA(20) should do the trick!

Here are my thoughts on today's action and some words of caution for both the bulls and the bears.

Take care and good luck!

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