Tag: Relative Strength Index (RSI)

Pick Up This Metal Fabricator Now That It's Bottomed

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Certain stock sectors tend to underperform others as part of the business cycle. Investors have known about this phenomenon for decades and cyclical industries like industrial goods have a well-established track record of ups and downs. Occasionally, these stocks find themselves at the bottom of their cyclical curve and suddenly have nothing but bad news priced into the stock. That can leave them deeply undervalued with a lot more upside potential than downside.

Industrial manufacturing production has fallen this year with projected growth of just 2.5%, partially due to the slow start in the first quarter thanks to adverse winter weather conditions. However, with the economy posting improving data, those figures could be revised upwards as the year progresses. With the lower expectations already priced into the manufacturing industry, stocks look to be at tremendously discounted prices. Continue reading "Pick Up This Metal Fabricator Now That It's Bottomed" →

This Small Cap Stock Is Overdue For A Breakout Performance

Posted on by Daniel Cross

Daniel Cross - INO.com Contributor - Equities


Certain stock sectors are great tools for measuring the health and state of the economy. Transportation is arguably the sector that says the most about it. When transportation companies are posting profits, that means more goods are being shipped and the economy is growing. And when those same companies are missing earnings, it means that fewer goods are being shipped and the economy is either stagnating or contracting.

So far this year, the Dow Jones Transportation Average doesn't reflect a strong and robust economy. It's fallen around 10% year-to-date and most transportation stocks have been bouncing around their 52-week lows for the past six months or so. However, that downward trend could be on the verge of entering a major reversal. Continue reading "This Small Cap Stock Is Overdue For A Breakout Performance" →

Time To Buy These 5 Buy Stocks?

Posted on by The INO.com Team

Hello MarketClub members and traders everywhere! As you start a new week, it is important to look at what happened last week in the markets.

There's no doubt that last week was tough week for most traders with Apple sliding almost 4% which was enough to drag practically every other market down. But what interested me was the market action on Friday. Last Friday we saw a recovery in the market and when one looks at the RSI indicator, all the major indices closed over the 50 line. In fact, all of the Trade Triangles on both the indices and Apple remain positive in both the intermediate and long-term trends.

I would not be surprised to see the market chop around these areas for a while, but I would rather be a buyer here, than a seller.

Here are some of the stocks I think are worthy of your attention: Continue reading "Time To Buy These 5 Buy Stocks?" →

Metal Tactics: Short Silver and Palladium With A Tight Stop

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Dear INO.com Readers,

The end of January brought worrisome signals to the metals' bulls and I want to show you where Silver and Palladium failed to sustain growth and why.

Silver Is In A Downtrend

Let's start with Silver, as it's more liquid and therefore more interesting. Below is a weekly candle chart. I started my metals posts from an overview of a monthly time frame and now I am digging deeper into details using a weekly period.

Weekly Silver Candlestick Chart

The medium term trend is bearish. At the end of 2014, Silver managed to stop a free fall that started above the $21 level. Price sculpted a double bottom figure (highlighted in the blue semicircle) in the $15-18 range. Continue reading "Metal Tactics: Short Silver and Palladium With A Tight Stop" →

Gold Update: Total Recast

Posted on by Aibek Burabayev

Aibek Burabayev - INO.com Contributor - Metals


Dear INO.com readers,

Today Gold hit the $1300 level and I updated my chart for Gold, as it was price trigger for my previous bearish scenario.

In my first article last December I charted the line graph for Gold with a descending triangle pattern detected on this metal. My projection for the mentioned pattern was bearish with quite bold target levels.

What is up today?

The main rule for success is to not to be biased and always challenge yourself with making a brand new analysis from time to time, and surely when market is not going your way.

Today I prepared an absolutely new Gold graph to put fresh eye on it, now with candlesticks.

Gold Chart, small and big wedge chart patterns.

This time I detected a very interesting chart pattern called the “wedge.” This type of patterns is outstanding as it has an ambiguous impact on the market with either a continued or reversed outcome. Luckily, we have two wedges on the same time frame at once. Both are the falling wedge type because of the descending highs and lows. The big one is highlighted in green and the small is in black. Apart from it, we have two more rare technical species on the chart. Continue reading "Gold Update: Total Recast" →