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Technical Grade: F

Every chart should be given a grade, if for no other reason than it’ll require you to evaluate the entire situation and make a decision.  Should it be traded?  Should it be watched?  Should it be avoided?

Looking at the chart of F below, this one earns an ‘F’ on recent behavior as well. Here are several reasons why:

I’m watching F for a trade on the short side, and there’s a well-defined rising trend line [1] that I’ll be using as my pivot.  The last rising trend line was broken with a sharp move lower, and while this trend line isn’t quite as steep, I still like the potential for a new leg down starting if it gets broken at $11.45…and particularly if it happens on increased downside volume.

F could instead rally from here, in which case I’d simply avoid it.  This one looks relatively weak, and the confluence of poor technical conditions lands it on my radar as a short candidate.

Here’s a closer look for you:


Chart courtesy of Worden [2]

Trade Like a Bandit!

Jeff White
Swing Trading & Day Trading Service
www.TheStockBandit.com [3]

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