Night and Day Chart Patterns

The price action on the daily chart of Family Dollar Stores (FDO) over the past three days has formed a morningstar candle pattern. This three-day reversal formation consists of a large dark candle followed by candle with a narrow opening and closing range (doji) and completed by a large white candle. It suggests a transition from bearishness to indecision to bullishness.

FDO Source: StockCharts.com View Chart » View in New Window »

This morningstar is forming at the intersection of the 33.8% retracement level of the 2013 high/low, the 150-day moving average, and the target projection of the breakdown from the previous channel consolidation. The relative strength index has moved above its 21-period average and the money flow index, a volume-weighted relative strength measure, is nearing an oversold condition. The Bollinger bandwidth indicator at the bottom of the chart reflects tight band compression, and this suggests the potential for a volatile move. Family Dollar is a buy after a close in upper candle range with a position size that allows for a stop under the $67 support level....211 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.