Sunday, August 29, 2010

Chart of the Day

Starting today, there will be a new daily feature on the blog titled "Chart of the Day". This will be in addition to the usual periodic watchlists. I will try and go through these charts in more detail compared to the setups given in the watchlists. Hopefully, it will be of some use to you readers out there!

Since the market bounced off a key support level on Friday and has room to run towards the upside, I decided to go with a short squeeze candidate for today - ARUN (short interest over 20% of float).

The stock consolidated nicely with MA(50) holding very well as support before making a breaking out on very impressive volume on Friday. It closed right at a key level and watch out for a break of 18.50 with volume.

Looking at the weekly chart, the next resistance level for the stock is at 21.50, thus giving it a lot of room to run.

I will be back later today evening with an overall analysis of the markets and the important levels to watch out for next week.

Take care and good luck!

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