Market Makes Move Above 200 Day on Higher Volume
Today the major indices made an important move to regain the 200 day moving average and clear resistance on higher volume. After making 2 previous attempts to cross the 200 day the markets are appearing to have made a successful double bottom. The double bottom pattern would be more confirmed if the volume on today's breakout was above average. Nevertheless, it was higher than the previous day which means the bulls have won the short term battle and are in charge.
Also the Dow made a double top breakout on the point and figure and a break of a trend line.
Many leading stocks are showing bearish signal reversals on today's rally which means it may have legs especially aerospace and defense stocks as the Middle Eastern Situation between Iran and Israel intensifies. Any short positions need to be covered and additional buy recommendations will be coming shortly.
The rally was good for gold today and I expect a breakout to new highs shortly. Gold is making an ascending triangle and I expect a breakout to new highs in the short term. $122.50 would be the next breakout with a measured move expected to $137.5.
Tweet
Author: Jeb Handwerger
Jeb Handwerger
http://goldstocktrades.com
I started reading charts at eleven years old. One day my father, a market trader and technician found his library of books on technical analysis mysteriously disappearing. He later found the textbooks under my bed. For many years day and night I studied technical analysis and charting, working and learning from my father who has over 50 years of trading experience. Technical analysis is my passion and love.
In 2001, I started noticing the junior mining stocks and gold as having a tremendous upside. For the past 9 years I have researched many juniors and have identified the major winners using technical analysis and finding top management.
I earned a Bachelors Degree in Mathematics and a Masters Degree. I learned most of my technical analysis from the school of hard knocks, managing real money for myself and for my family.
Constantly perfecting my craft, I have traded for two decades of success in many different markets. I have been asked to post ideas to some of my students who have taken my course in charting and technical analysis. I have made an excellent living trading stocks for myself.
Investing in stocks is risky and could result in losing money.
I am offering ideas for your consideration and education. I am not offering financial advice. Please do your own due diligence. I am not an investment adviser. I invest my own money in the stocks I suggest. I am an investor communicating my opinion of the markets with other investors. I will be straight-forward and honest.
I am not a promoter cloaked as an analyst. Unlike some other "advisory" services I do NOT accept payment in ANY form from the stocks that I mention be it in cash, options or equities. I am free and independent of any taint or conflict of interest. Simply check their disclaimer statement as mandated by the SEC for your protection. It might be a revelation to you or at least "let the buyer beware".
Sign up for my free newsletter where I will post my "up to the minute" ideas and analysis of the markets. Comment and ask questions as we are all learning and growing. Empower yourself and learn how to anticipate opportunities.
All material on my newsletter and blog is copyrighted. I do not mind you sharing my information and work as long as you cite Gold Stock Trades.
Copyright © 2010-2012 Jeb Handwerger
Circle Us