Heyer Capital, LLC

investment management and timely advice from a local CPA (Fox Valley, Wisc.)

revisiting the 21 day average

leave a comment »

I encourage you to set your chart preferences to show the 21 day moving average (or 20 day average on Yahoo!). It’s uncanny how often I see stocks that find support at the 21 day average.

I wouldn’t say use a 21-day touch as an entry point into a stock, but more as a reference to the health of the stock. If you own it, and it falls to and holds the 21 day, be comforted. If it drops lower than the 21 day, look for where the 50 day is.

If I had to characterize these stocks, let me suggest that they are the ‘hip’ stocks of the market. In other words, there’s a fair amount of ‘momentum’ money behind them.

Here’s two examples. These happen to be big-cap stocks, which the market seems to be favoring now.

CVX GS 21 Day

Advertisements

Written by heyercapital

May 29, 2007 at 9:13 am

Posted in charting, stock ideas

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: