Four Weekly Charts That Look Like Trades

Volatility is a short-term trader's best friend, but if your time horizon is a bit longer, it can be a frustrating adversary that takes down positions before they've had the opportunity to mature. Weekly charts smooth out volatility, lessen whipsaw action and allow your trading thesis to play out. Here are two long trades and two short trades that are based on the stocks' weekly charts. 

Infosys Technologies (INFY) provides technical business consulting services. The stock recently made a base at the 62% retracement level of its 2011 high and 2012 low, and now it is attempting to break above the 50% retracement level of that range. Moving-average convergence/divergence is making a bullish crossover, and the relative strength index has crossed above its 21-period signal and center lines. Chaikin money flow uses an average of accumulation/distribution to measure positive and negative money flow, and there is a 21-period average of the indicator overlaid on the graph. It is crossing above both its centerline and signal average. The stock gapped higher on the open and is a long opportunity at its current level, using a position size that allows for a stop under last week's low....222 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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