A Deal Could Push This Stock Through Resistance...READ MORE
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A Deal Could Push This Stock Through Resistance
Traders often look for stocks that are in the midst of an up trend or a down trend. They might forget that there are actually three possible trends in the stock market. Stocks can move up, down or sideways. The sideways trend could be among the most important.
Although it can be overlooked, the sideways trend has been recognized since at least the late 1800s. Charles Dow, the founder of The Wall Street Journal and developer of the Dow Jones Industrial Average and other indexes, often wrote about the sideways trend in the market.
Dow called the sideways trend a line and noted that a line could substitute for a down trend. In effect, he noted that the line could serve as a rest phase for a stock after a big move and prior to the next big move.
We spotted a line formation in a stock that we highlight in our latest article, which also explains why the stock could be ready to move out of the sideways trend and develop a new up-trend. Then we identify a strategy that can be used to trade this development.
The strategy limits risk to $175 based on recent market prices and could deliver a gain of 85% in a short-term trade. We have all the details of the strategy, the news about the stock and the trade in our latest free educational article that is available right here.
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