Wednesday, February 17, 2010

Wednesday Commodities Round-Up

Consider the two breakouts highlighted on the chart. Both came after standard consolidations.

A.) After a triangle consolidation, prices formed a strong candle on increased volume. This is a great looking breakout and should have attracted a lot of attention.

B.) This breakout was less then spectacular and the volume was weaker. That doesn't mean it isn't a legitimate breakout. It does mean it's more suspicious.

A.) Note the break-out is really a spinning top -- a weak candle. Also note the lack of volume. This is note a great looking break-out.

A.) The EMA picture is jumbled. Prices are above the EMAs, both all three are in a tight range with the shorter EMAs below the longer.

B.) The MACD has given a buy signal and

C.) Money is flowing into the security.