I do not trade individual stocks. I trade only ETFs. However sometimes I like to look at stock charts and remind myself why.
Here is one that caught my attention:
It’s an hourly chart. Would you buy it here? Would you sell it now? Would you hold during that last day?
Would you keep your cool? Not for me!
Granted it’s an hourly chart. OK let me zoom out to a daily chart.
A bit more info. At least I can see some significant price levels that I might use as support. Oops – after the last day (the ugly day from the hourly chart) we are almost testing a significant support! At the thought on how easy it was for this stock to get within a matter of hours to the significant support – I say: not too many buyers. Today volume was high and the price dropped to support. Not a good sign.
Now I know why I continue to stick to trade ETFs. These were charts of GOOG after they reported earning on Thursday 4-12-12. Does that mean that GOOG is a short? Who knows? The daily chart is very hectic – too hectic for me to bet any money on it.
There are traders that prefer to work with individual stocks. I will stick to what works for me though…