Stocks Move Higher Today As Leaders Showing Signs Of Strength
Posted on November 30, 2007
Filed Under Profitable Trader |
The markets are now in a confirmed rally. Although the best time to
see a follow through day is between the 4th to 7th days of the rally attempt, we will take what we can get. The signs of strength among the markets top leaders are promising. Here we can see GOOG finding support at it’s 10 week line, offering a buy point if you didn’t get in on the rally back in September.
AAPL is also rebounding off it’s 10 week line in good volume. You can see that AAPL formed a nice pattern of three tight weekly closes beginning in November. This is usually a good sign of institutional support. AAPL was able to find support during a market correction. Stocks that hold up well during market corrections are usually the ones that outperform when the correction is finally over.
Finally we have BIDU, one of the markets stongest performers this year. This stock is also bouncing off it’s 10 week like in good volume. Notice how volume has been picking up over the last number of weeks, a good sign. The three heavy sell weeks occured during the market correction so they are not as significant as they would be if the market was in rally mode.
Given the new found strength of these leading stocks, as well as others that are breaking out of newly formed bases, I think we have to say the market has resumed it’s previous rally. Happy Trading!
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