Penny Sleuth Newsletter
How Not to Get Spooked By Penny Stock Charts By Greg Guenthner November 1, 2010 For traders, stock charts can give a wealth of knowledge about how a stock is trading. They can tell you if a rally could ensue or if it`s time to unload your shares. Follow this advice to avoid finding false positives in your buy and sell signals Charting isn`t some bizarre cult that works off magic and hope. It`s actually the opposite. It works because human nature is predictable.
People investing in stocks will follow predictable trading patterns more often than not. If you learn to find these areas in charts that will coax investors to buy or sell, you can make money by trading stocks. It`s that simple.
6 Penny Stocks to Own Right Now Penny Stock Fortunes is giving away SIX penny stock recommendations to all new subscribers! But you must hurry because these plays could explode at any time.
watch the presentation now.
However, many traders get the basic principles of support and resistance totally wrong. It`s critical to view support and resistance levels as flexible zones, rather than unbreakable points that always trigger a big move. In fact, if you see a stock break below short-term resistance intraday, you could be getting clues as to how strong the buyers really are.
http://pennysleuth.com/files/2010/11/110110Sleuth.png Here we have a stock that had traded in a narrow range for many weeks. If you owned shares while the stock was trading in this channel, you might have been tempted to sell when it broke support during the trading day.
But notice how every time it dropped below support, strong buying pushed it back before the end of the day. This is a great indication that investors aren`t willing to part with their shares at lower levels and that buyers are willing to pay the higher prices to add to their positions. Also take note that the volume was strong as the stock rallied back to its channel.
In these situations, it`s best to wait for the market to close before deciding that it might be time to part with your shares. Fake outs like these happen all the time, both at support and resistance. Without volume confirmation and some follow-through, the move might not be the real deal If you had been spooked out of your shares on one of the days when the stock briefly dropped below support, you would have missed the powerful rally just a couple of weeks later when the stock convincingly broke resistance on heavy relative volume.
Sincerely, Greg Guenthner P.S.: My readers and I have had some terrific success lately by trading small, OTC stocks. To learn more about how my system spots profitable penny stocks, read my latest report http://clicks.pennysleuth.com//t/AQ/AAMFuA/AAMPRQ/AAK7lg/Ag/AgKTMA/yr7y *******************************
Why Waste Time and Money on Blue Chips All the great investors know the real profits are in these hidden stocks that no one talks about.
Hot biotech plays are just the start. Take a look at what the CXS Money Multiplier can do for your investments. Click here for a FREE presentation…
How Not to Get Spooked By Penny Stock Charts is featured at Penny Sleuth.
Penny Sleuth Special Reports:
The Secret $200 Retirement Blueprint http://clicks.pennysleuth.com//t/AQ/AAMFuA/AAMPRQ/AAJqcQ/Ag/AgKTMA/lZkr How One Pink Stock Gained 113% in Less Than Two Months http://www.pennysleuth.com/rpt/pennystocks.html Investing in the Over the Counter Bulletin Board (OTCBB) http://www.pennysleuth.com/rpt/OvertheCounterBulletinBoard.html _____________________________________________________________________________ The Penny Sleuth, a free e-letter, offers independent new and commentary on small cap stocks, options and high growth opportunities. We sent this e-mail to because you or someone using your e-mail address subscribed to this service.
Are you having trouble receiving your Penny Sleuth You can ensure its arrival in your mailbox by: Whitelisting Penny Sleuth.
To end your Penny Sleuth e-mail subscription, click below:
http://clicks.pennysleuth.com//t/AQ/AAMFuA/AAMPRQ/aHR0cDovL3NlcnZpY2UucGVubnlzbGV1dGguY29tLw./AA/AgKTMA/l0o7 Nothing in this e-mail should be considered personalized investment advice.
Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers.
All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.
2010 Agora Financial, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the World Wide Web), in whole or in part, is strictly prohibited without the express written permission of Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202.