Fitz Bits: Gold Still Has Punch
Each day, I'm featuring reader requests for the current technical take on a stock. I can't assure that I'll get to yours, but I will make every attempt to do so, as long as the stock meets the following criteria:The average daily trading volume exceeds 250,000 shares. If a stock trades too thinly, chart analysis doesn't help much because there are not that many traders involved. One big buy or sell order can move the stock in ways that chart analysis cannot predict. So let's stay above 250,000 daily shares. The stock trades above $5. Below that level, stocks don't get the same treatment by institutions and portfolio managers. Also, many traders set their trading screens to ignore stocks below $5 just to cut down on trading candidates. While I'm sure your favorite penny stock is the next undiscovered gem, I'm not in the business of breaking news stories. So once your gem is discovered, let me know, and I'll look at the chart. Make sure you check my recent "3 Stocks I Saw on TV" videos first. I don't want to be too redundant, so if I've recently covered a stock in video format, I won't repeat it here.
Hopefully, you've noticed that I alternate between daily and weekly bars in the charts. It's important to understand the underlying rationale for choosing one time frame over another. I differentiate between these time frames in simple terms....660 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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