HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by Arthur Hill
After a bounce in January-February, XM Satellite is running into stiff resistance and a recent bearish engulfing pattern points to lower prices ahead.
Position: Sell
Arthur Hill
Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.
PRINT THIS ARTICLE
WEDGE FORMATIONS
XM Satellite Breaks Wedge
02/28/08 11:02:32 AMby Arthur Hill
After a bounce in January-February, XM Satellite is running into stiff resistance and a recent bearish engulfing pattern points to lower prices ahead.
Position: Sell
| XM Satellite (XMSR) stock has considerable resistance around 13.60 from a number of technical items. First, broken support from the November lows turns into resistance. Second, the rally back above 13 retraced 62% of the prior decline. Third, the stock formed a bearish engulfing on February 19. These three items point to considerable resistance and the stock needs to take out the February 19th high to break this resistance area. |
| In addition to resistance, the stock shows early signs of breaking down. XMSR broke the lower trendline of a rising wedge with a sharp decline last week. There was a bounce early this week, but trendline support turned into resistance as the stock declined sharply on February 27. This decline also occurred on high volume. I mentioned the bearish engulfing in the first paragraph and this pattern was confirmed with the trendline break. See Figure 1. |
|
| FIGURE 1: XMSR, DAILY. XM Satellite stock shows considerable resistance around 13.60. |
| Graphic provided by: TeleChart2007. |
| |
| The moving average convergence/divergence (MACD) confirms weakness with a signal line crossover. The bottom window shows the MACD with its signal line (nine-day exponential moving average [EMA]). The indicator held above its signal line the entire advance, and the break shows that upside momentum is seriously waning. The MACD is still in positive territory, however. A move into negative territory would likely coincide with an acceleration lower. |
Arthur Hill is currently editor of TDTrader.com, a website specializing in trading strategies, sector/industry specific breadth stats and overall technical analysis. He passed the Society of Technical Analysts (STA London) diploma exam with distinction is a Certified Financial Technician (CFTe). Prior to TD Trader, he was the Chief Technical Analyst for Stockcharts.com and the main contributor to the ChartSchool.
| Title: | Editor |
| Company: | TDTrader.com |
| Address: | Willem Geetsstraat 17 |
| Mechelen, B2800 | |
| Phone # for sales: | 3215345465 |
| Website: | www.tdtrader.com |
| E-mail address: | arthurh@tdtrader.com |
Traders' Resource Links | |
| TDTrader.com has not added any product or service information to TRADERS' RESOURCE. | |
Click here for more information about our publications!
PRINT THIS ARTICLE
Request Information From Our Sponsors
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor