Monday, June 18, 2007

Stock Chart: AMTD, Ameritrade, Nice Turnaround (June 18, 2007)

Ameritrade ( AMTD ), has come back nicely after a 1 year downtrend. We recently see the Golden Cross, where the 50 day Moving Average goes above the 200 day Moving Average. The stock also broke above the $19.69 resistance, and the stock is both above the 50 day and 200 day moving average. The turnaround looks intact, though some might argue that the stock may be overextended above the 50 day and 200 day moving average.

To check the status of AMTD on a daily basis, here's a specially formulated stock chart of AMTD.

Turnaround Stock Patterns

If you've been following this blog , you may have noticed that there are many other stocks with similar turnaround patterns. The general idea is that you can draw a downtrend line on the a semi-log chart pattern and see if there is a breakout on good volume. It would also be nice if this breakout coincides with the stock going above either the 50 or 200 day moving average.

Yes, you can't always catch the optimal buy point, but you can still buy a stock if it remains in an uptrend, and if it is above both the 50 and 200 day moving average.

Other Stock Examples

1. GLW (Corning) Chart

2. DELL (Dell) Chart

3. BTU (Peabody Energy) Chart, a Coal Company.

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