Sunday, May 30, 2010

MON- Monsanto Co- Very nice Trend Reversal Signal

Buy MON on Monday?
Monsanto Co stock chart is pretty interesting. Two days ago, on Thursday, May 27, it gave a very nice REVERSE (Buy) signal.
Not sure what was the news but it there must be some news for that day's price movement. MON opened down with a Gap and kept going down. Then suddenly, it reversed its trend and managed to close where it opened. The volume was distinctively high. This is a text book style REVERSE (Buy) signal (Text book referred is 'Profit From Prices' LOL).

If someone is trading/investing in this stock, please keep a stoploss at $48.

Friday, May 21, 2010

Nice timing by the one who collected all these signs of a maturing bull market

Nice timing by the one who collected all these signs of a maturing bull market..

C- Citibank--- Is Citi waking up (Not sure if they still use the line- Citi never sleeps but...)

C- Citicorp stock is trading down again... From a low of $3.11, it touched a high of $5.07 and now it is back to $3.50 range.
Today, there is a nice U TURN Signal. Wish volume was distinctively higher. Anyway, U Turn as always is a powerful trend reversal signal. The overall market has turned pretty weak recently so I am guessing that careful traders can wait for one more trend reversal signal or a confirmatory signal. I am going to keep watching C- the Citi stock again.

For those who are not familiar with U TURN signal, please look here for the detailed writeup about this powerful stock trading signal:

Monday, May 3, 2010

TSO- Tesoro Petroleum- Refinery stocks- are they good buys?

TSO- Tesoro Refinery stock.
On the weekly chart, Tesoro stock has a very nice trendline/resistence line. Chances are it will break upwards.
For traders and investors interested in cyclical stocks, refinery stocks are worth watching.
If the breakout occurs in TSO, it should be traded with a stoploss just below the exntended trendline. This industry has been in bust for last few years and when the fortunes changes, these stock can return 200-300% return over a year or two.
(The Crude Oil is in interesting stage. At $90, its technical requirements can be met for the great drop from $145 level to low $30s level, assuming 50% retracement. Anyway, if the Oil goes down, the margin for the refiners should improve)

As always, keep a stoploss if you enter into this stock. Also there is no trading signal right now. Just watch it and act when it breaks the trend line from below. Then stay long, as long as the prices are above the extened trend line or risk 10% loss from your purchase price- no more.