This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Five Stocks Stare Down Resistance

This column was originally published on RealMoney on Nov. 14 at 8:30 a.m. EST. It's being republished as a bonus for readers.

My traditional view of technical analysis is that it's best in the short-term. A recent email, though, made me at least rethink my views.

Gary, I've enjoyed your articles over the years and today's article raised a question in my mind. Although this may not be answerable, I wonder whether (using TA) you have been more successful with short trades, as opposed to long trades. Could this be a topic for a future article or if you've already addressed this, could you pass along the reference? Keep up the great work. -- F.O.

That question is a good one. I used to think TA was more effective in the short term, and if pressed, that's still my basic belief. However, over the years I've seen trendlines, support and resistance work in a wide variety of time frames, including weeks, months, and even years. For some good examples, check out my column on "long-term stocks" I showed a few weeks ago.

Today, the Dow Jones Industrial Average, Altria (MO - Get Report), Citigroup (C - Get Report), Qualcomm (QCOM - Get Report), AMR Corp. (AMR) and nVidia (NVDA - Get Report).

And that is the final word from MCI arena, where the Washington Wizards are quietly working their way into one of the NBA's best teams. Of course, until they win a championship, they'll always play second fiddle to the ever-disappointing Redskins.

P.S. from Editor-in-Chief, Dave Morrow:
It's always been my opinion that it pays to have more -- not fewer -- expert market views and analyses when you're making investing or trading decisions. That's why I recommend you take advantage of our free trial offer to RealMoney premium Web site, where you'll get in-depth commentary and money-making strategies from over 50 Wall Street pros, including Jim Cramer. Take my advice -- try it now.

Charts produced by TC2000, which is a registered trademark of Worden Brothers Inc.

At the time of publication, Smith was long Altria and Citigroup, although holdings can change at any time.

Gary B. Smith is a freelance writer who trades for his own account from his Maryland home using technical analysis. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Smith writes a daily technical analysis column for and also produces a daily premium product for called The Chartman's Top Stocks -- click here for a free two-week trial. While Gary cannot provide investment advice or recommendations, he appreciates your feedback; click here to send him an email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
C $45.57 -2.38%
MO $63.20 0.13%
NVDA $35.56 -1.20%
QCOM $50.73 -0.74%
AAPL $95.18 1.64%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs