Friday, May 15, 2009

The Horizontal and the Not So Horizontal


As I look at charts, I’m reminded of lines that are important.  Stan Weinstein implores that you should NEVER buy a chart that is not trading over it’s 30 week moving average.  (I’ve ignored that advice on occasion to the peril of my portfolio!). 

He also pointed out something that I’ve not seen stated so clearly, and that is that HORIZONTAL breaks of trendlines (either up or down) are more important than sloping lines.  Here’s a chart of UNG.  I don’t own it, but I do have some of my husband’s money in the Fidelity Natural Gas Fund. 

It’s worth watching for these points.


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