Tuesday, December 14, 2010

Chart of the Day

Today's Chart of the Day is FST. Nice bounce off MA(20) yesterday on impressive volume. Like it on a break of 37.


Take care and good luck!

4 comments:

Anonymous said...

Any thoughts about the "3 Push Pattern" ?....each successive higher high lead to a lower lower on the 3/10 momentum oscillator.

Thanks,

Bill Orsini

positiontrader said...

I don't know what you mean by the "3 Push Pattern" Bill. Perhaps you could explain? Thanks!

Yes on the lower low on the MACD. But I am betting on the price-volume taking precedence in the short term. I wouldn't take it for a longer term swing due to the negative divergence.

Anonymous said...

My thoughts are listed on the chart. Thanks again!


http://www.screencast.com/users/fors55/folders/Jing/media/d0c80723-3fba-46e3-aa9d-a142951d2cd4

positiontrader said...

Thanks Bill! You are totally right on the divergence with the MACD part. That is usually an indicator of lower prices.

But another thing to consider is the high volume yesterday. That makes me like the odds of a short term run IF it manages to cross 37 first, which is the resistance level. I would play this is as a momentum trade rather than a swing trade and that is why it is important to wait to see if 37 is broken before making an entry.

Thanks for the comment and the chart! Always nice to get some discussion going!