If you are
a subscriber to our free newsletter
service, our March issue describes how
to develop a checklist when evaluating
a stock. This will help take some of
the confusion out of decision making.
Currently
on our MSO watch, we have applied the
checklist since March 06.
March
06 checklist (trend reverse)
March 07 checklist (downtrend)
March 08
checklist (downtrend)
March 09
checklist (downtrend)
March 10
checklist (downtrend)
March 11
checklist (downtrend)
March 14
checklist (downtrend)
March 15
checklist (downtrend)
March 16
checklist (downtrend - possible
correction)
March 17
checklist (downtrend - possible
correction)
March 18,
checklist, downtrend
| Stock
Check List - Trending checklist
|
| Stock: MSO |
BUY/SELL Rating: -7.5 |
Date: March 18, 2005 |
| Indicator |
Confirming |
Negating |
| Trending
Indicators |
| Trendlines |
|
sideways/down |
| 20, 50, 100 day SMA's |
|
20 and 50 and 100 day SMA
above price line
20 and 50 day SMA cross |
| MACD |
MACD-H convergence
|
MACD downtrending
|
| ADX/DMI |
ADX convergence
+DI and -DI have small convergence |
+DI below -DI
ADX below 30 |
| Volume Indicators |
| Volume |
|
Volume downtrending |
| OBV |
|
Sideways |
| PVT |
|
Sideways |
| Patterns |
|
|
| Support/Resistance Breakout |
resistance line held |
|
| Candles |
|
Bearish
Tasuki |
| Strength Indicators |
|
|
| RSI |
slight convergence |
|
| __________________________________________________________________________ |
| Points: |
4 positive |
11.5
negative |
The trend
is a weak sideways trend at this point.
It would be still considered a bearish
pattern. Certain key confirmation signals
have not been reached. In this checklist
we do have some positive indications.
1) MACD-H
is converging, we are waiting for a
zero line cross to confirm.
2) RSI has
small convergence, we are waiting for
the RSI to cross strongly up through
the 30 line.
3) ADX is
converging, we are waiting for ADX to
cross through 30, it has already crossed
25.
4) -DI and
+DI have begun to converge. We are waiting
for +DI to cross -DI to confirm.
5) The trendline
has held at 22, is this a short term
correction? or a new breakout?, at this
point it is a sideways consolidation.
There is no trendline breakout.
6) Volume
receeding, we are waiting for the volume
to increase along with an increase in
price.
(**note:
in this checklist, warning signals,
weak signals etc.. have only a point
value of 0.5, a clear signal has a point
value of 1)
7) As far
as the candlestick pattern, waiting
would be prudent. We are waiting for
a reliable reversal pattern. (same applies
if you are using chart patterns)
The checklist
shows some potential, there is still
no confirming signals.
The indicators
applied to this checklist can be read
about on our indicators
page.
If you would
like to see another indicator added
to this checklist, let us know.
