February 27, 2009
Succesful Trading Using Chart Signals
By Planet Wealth
Waiting for confirmation of a chart’s signals is crucial to successful trading. Though a chart may show high probability signs of breaking one way, it is still possible for it to break in the opposite direction.
WOW is a excellent example of the above happening. Technically, the charts have been bearish on WOW for some time, due to the 16 month down trend and weekly resistance meeting at the same point, giving the expectation of it being pushed down again. Yesterday and today the stock clearly broke up and out of these two lines making the view now Bullish.
To add to the bullish view yesterday was a breakout and confirmation of a bullish flag (flags spoken about it previous postings). The potential price project the flag gives is around $30.00. But, there is a weekly resistance at $29.30 which could cause the stock to temporarily retrace or consolidate before attempting to break through to $30.00.
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