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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (7986)	5/17/2005 9:28:02 PM
From: Ken W	Read Replies (3) \| Respond to of 23958

Sergio Okay, you're asking for my secrets? LOL I guess it is no big secret, we have been doing this for the past 5 orr 6 years with pretty good success. Let's look at CDIC first: stockcharts.com[m,a]daolyyay[pb50!b200][vc60][iUb14!Lp14,3,3]&pref=G Remember when we mentioned at 2.00? 2 is a whole number and therefore an important mental number. That's why I mentioned it at that point. Note that the STOCH's and RSI were both extremely oversold at that point. The overhead moving average was, at the time at about 3.00. The stock, over the next three weeks moved to 2.50. Three was my orginal target, but there was a neck line formed at 2.50 on the way down. I took about 14% on the trade...cuz, I wanted some cash for our little friend. LOL Next RCO stockcharts.com[m,a]daolyyay[pb50!b200][vc60][iUb14!Lp14,3,3]&pref=G The cross over the 50dMA is very important and the bounce off the 50 RSI line..says the stock could test the overhead moving average...BUT..the stock cannot sustain a move to the 200dMA and still remain oversold. Also, note that there is a small reverse head and shoulders at about 1.80, right along the horizontal spike in early April, thus forming a strong horizontal resistance line. So, my target on RCO is 1.80ish on the sell side and as close to 1.25/1.30 on the reload..Eventually, the 50 may cross over the 200, until then it is a buy at the 20dEMA or 50dMA for trading back to toward that resistance line at 1.80. Now, for our little favorite. stockcharts.com[m,a]daolyyay[pb50!b200][vc60][iUb14!Lp14,3,3]&pref=G As you have stated there is a nasty 1.30 horizontal resistance line forming, however, the stock is in a definite uptrend with the 50 over 200 cross. There is a strong horizontal support line at 1.10...that would be the first place that one should buy on weakness with 1.04ish the second buying opp. A close eye must be kept on the RSI 50 line, it needs to bounce off of that along with a STOCH's in an oversold condition...it appears that is going to be the case. The stock should then be sold at the 1.30ish resistance line and bought back at the 50dMA or 1.10 again. The difference is only .06!!!!!!!! It should be kept in mind that these parameters are for short term trading purposes only. There is nothing fundamental about it, only the charts, taking into consideration important support lines, oversold conditions, and volume. Okay, that is the 3 minute primer. LOL Ken