Stocks Deliver Buy Signal

August 25, 2022

Stocks formed a swing low on Thursday.

Stocks have been in a daily uptrend that has been characterized by highs forming above the upper daily cycle band and lows forming above the lower daily cycle band. Stocks formed a daily swing low on Thusday. Forming a swing low above the lower daily cycle band indicates a continuation of the daily uptrend and signals a cycle band buy signal. With stocks approaching resistance from both the 10 day MA and the 200 day MA, one strategy would be to buy the swing low, with a stop at Wednesday’s low. Then positions can be added to with a close above the 10 day MA and then again with a close above the 200 day MA.

2 responses to “Stocks Deliver Buy Signal”

Koen Huysman

August 25, 2022

As I mentioned, so less chance now that the blue line or the 50 moving average is touched…. It was basic scenario that uptrend ended?

Reply
1. likesmoneystudies
  
  August 26, 2022
  
  I am not clear on your question, ” it was basic scenario that uptrend ended?”
  Stocks are currently in a daily uptrend. The swing low above the lower daily cycle band indicates a continuation of the daily uptrend. I do recognize that stocks really need to clear both the 10 day MA dn the 200 day MA in order for any trending move to be sustained.
  LM
  
  Reply

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