A new Market Call is posted
every market day.
Sears
Roebuck & Co - S
Market Call™ for September 2, 1998
Contributed by Mark Seleznov, TrendTrader.com.
The purpose of this Market Call section is to educate
readers in technical analysis patterns and indicators. As
with all investment information, you need to research
information and consult your financial advisor before
initiating any strategies that are contained in Market
Call.
Also, you must realize that as with all trading
strategies, opinions can change quickly depending on
market conditions and developments.
Retracements
We finally did get a bounce from our oversold condition.
This may continue for a couple of days and stocks should
retrace portions of the large declines we have seen over
the past few weeks.
Market technicians use retracements to calculate how far
a stock might retrace or move counter to its major trend,
before continuing in the direction of the major trend.
The retracement percentages that are most commonly used
are 38%, 50% and 62%.
SEARS, S, reached a high on July 7 of 63 7/16 before
dropping down to 45 5/8 on August 11. This was a 17 7/8
drop from high to low. I like using a 50% or 62%
retracement value for many moves.
S had a 62% retracement from the August 11 low to the
August 25 high. From August 25 to today's low is about 11
points.
I would look for about a 62% retracement to 51 as a
possible new resistance area as another opportunity to
exit the stock or short S again.
You can apply this same calculation method to your stock
during the next few days to look for possible areas of
resistance in your stock.
Click here for details: Market Call Information
Mark A. Seleznov is a General Securities Principal and Managing Partner of Trend Trader, LLC, a NASD, SIPC broker/dealer firm located in Scottsdale, Arizona. A professional trader for over 25 years, Mark was a Market Maker on the Philadelphia Stock Exchange, a Retail Registered Representative, and futures trader. Mark is an author and recognized expert in equity Day Trading. He conducts seminars in Equity Day Trading and offers his firm traders training and support. Mark writes articles for market publications and Internet sites that focus on trading.
Market Calls is a daily syndicated column on trading by Mark A. Seleznov, Managing Partner of Trend Trader, LLC. For information on obtaining Market Calls for your web site, newspapers, or publication, contact Trend Trader, LLC at 602-948-1146
Disclaimer: Trading in securities may not be suitable for all individuals. Consult your broker or other professional to determine your suitability. This is not an offer to buy or sell securities. The advice given above is of a general nature and should not be taken as a recommendation to buy or sell the referenced security.
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