The March issue
of our free
newsletter service describes how to
develop a checklist when evaluating a
stock. This should help take some of the
confusion out of decision making. The
March 06 checklist
shows the trend reversing so now let's
look for a break in the newly formed downtrend.
In this checklist,
the RSI has been added. Since we have
confirmed that the stock is downtrending,
we are looking for a new entry. The RSI
will help us pick the new bottom.
| Stock
Check List - Trending checklist |
| Stock: MSO |
BUY/SELL Rating: -10 |
Date: March 07, 2005 |
| Indicator |
Confirming |
Negating |
| Trending
Indicators |
| Trendlines |
|
downtrending |
| 20, 50, 100 day SMA's |
|
20 and 50 day breaks |
| MACD |
|
downtrending |
| ADX/DMI |
|
+DI below -DI
ADX below 30 |
| Volume Indicators |
| Volume |
|
Volume confirms trend |
| OBV |
|
Downtrending with price |
| PVT |
|
Downtrending with price |
| Patterns |
|
|
| Support/Resistance Breakout |
|
Resistance Breakout |
| Candles |
- |
- |
| Strength Indicators |
|
|
| RSI |
|
downtrending |
| __________________________________________________________________________ |
| Points: |
0 positive |
10 negative |
Based on our
checklist, this is clearly a downtrend.
The sell conditions according to the checklist
were hit on March 06. At this point,
we are waiting for the trend to stop and
reverse. Several potential resistance
lines have been marked on the chart and
when the price hits these lines we may
see a brief correction or even a reversal.
If you would
like to see another indicator added to
this checklist, let us know.
