This is a segment of a column that was originally published on
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This weekly chart of
shows a stock that's generally making a series of higher lows. The bulls have been unable to push the stock above $500.
But the longer this stock grinds away in the $450 to $500 range, the more explosive the move is likely to be when the next leg up begins. I've drawn the uptrending support line that connects the lows. I'd keep a stop just below that line to protect trading capital.
(Please see chart below.)
to see more of Dan's chart analysis.
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At the time of publication, Fitzpatrick had no positions in the stock mentioned, though positions may change at any time.
Dan Fitzpatrick is the publisher of
, an advisory newsletter and educational forum dedicated to teaching effective risk management and trading methodologies to aspiring traders and investors. He is a former hedge fund manager and a member of the Market Technicians Association, and he now trades from his home in San Diego, Calif. While Fitzpatrick holds various securities licenses, he does not give recommendations to buy or sell stocks. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. He appreciates your feedback;
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