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Wanna get a wedgie? No, not that kind of wedgie. I mean a stock that has formed a wedgie, like the 10 charts presented below.
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If/when silver and gold break to the upside this week, a whole lot of these choices should break out of their wedgies and do pretty well for their owners. A wedge usually is formed because there is a battle going on between buyers and sellers. They conclude when price breaks up or down, with one side claiming victory and the other side running in defeat. A wedge can be an ideal pattern to trade, once you know which way it is going to break, that is.
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At the present moment, both gold and silver futures are in wedges on the one hour chart. These wedges do not go on forever. At some point before they conclude, a breakout occurs.
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With no further comment, here are 10 stocks in alphabetical order that have formed a wedge on the True Strength Index (TSI) indicator of their DAILY chart. I personally prefer those wedges that if/when broken to the upside will occur with the TSI ABOVE ZERO. Secondly, I would prefer to see that the Money Flow Index (MFI) indicator is rising.
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I'll have my eye on these this week. Maybe you will find an interesting one to watch/trade as well.
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Click on any chart to ENLARGE.
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Nov. 23 Weekend report
1 day ago
Hi John,
ReplyDeletejust a note on CGC: its under takeover action by Gammon Gold. The takeover price is $4.57 per share and is under investigation over potential breaches of fiduciary duty by the CGC board of directors, so I'd stay away from this one till things settle.
Thanks for your posts!
Sergio.