When Your Broker’s Recommendation Looks Like Nothing Special
Sometimes the fundamental news is early. If your broker presents a stock that looks mediocre on the charts, watch it for several weeks. Sometimes technical analysis will signal when the time is finally right to buy.
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If your broker presents a stock that looks mediocre on the charts, watch it for several weeks. |
Figure 32.1 shows the stock of Western Atlas gapping higher in May 1997 on a clear volume spike. This broke a consolidation zone and kicked off a five-month rally. Gaps alone are important signals, and combined with high volume, these become very reliable.
Figure 32.1. Western Atlas
Now combine a selling frenzy with a negative recommendation from your ...
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