(2014-03-05, 10:16 AM)isatrader Wrote: Attached is three stocks making Stage 2A breakouts. The charts are weekly, and each is at the close of the week. So assuming that the overall market and group action of the stocks was positive:
- Which of the following stocks would you buy? Give reasons concerning the various technical attributes that we look for. i.e. Price action, Moving averages, Volume, Relative performance, near term Resistance etc.
- Rank the stocks in order of best to worst? Give reasons.
well chart 2 has broken out with healthy volume whereas the other two haven't, its relative strength has just broken through its average but importantly near term resistance looks quite weak. It would appear to have broken through any resistance whereas chart 1 looks like a minefield nearby.
MAs are similar on all, so to the relative strength so the differentiating factors would seem to be volume and resistance
So I would buy 2, and in order of preference I'd be looking at 2, 1 and 3
thats my take on it anyway!