Thursday, April 24, 2008

A Few Nice Charts, But I Want to See More

Let's start with some bad charts and get them out of the way. I saw a few major blowups today like shown below and that is something to pay attention to. Earnings play a role here but good stocks should not totally crash like this in a healthy market.

AXYS, NEU
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.


The commodity sector did get hit today but all in all, from what I saw, the oils held up fairly well. Many got support near their short-term moving averages and bounced off their lows for the day. There are some charts that don't look very nice though, and it is certainly possible that today was the start of a more severe pullback in this sector. They certainly could use one so it pays to be careful here.

BEXP, CLR, TTES, SPN
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.


Two new charts to put on the watchlist - neither are ready right now but could be very nice setups with a week or so of rest.

WGOV, CLS
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.


Here are a few that look ready for possible buys if you like. Keep your discipline and enter into these or any other longs in portions, making sure you're right with your buy before adding to it.

UFPT, CCK
DGLY, IDRA
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.

I still didn't see a ton of new, great-looking charts in my scans, but I have to give this market the benefit of the doubt on the long side until it gives evidence to the contrary. Let's see what tomorrow brings. Best of luck in your trading.


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