Stock Charts Say Watch Out

Day Trading Using Stock Charts - Video Tips

You can never have too much knowledge about stock charts and technical analysis if you are interested in learning about day or swing trading stocks. Oscar Carboni is an interesting guy who has 30 years' experience trading stocks, he doesn't always get it right, but as far as I have seen he does get it right more often than not. But at least he is always willing to step up to the cameras and tell people where he thinks the markets are headed, before the event, then you can judge for yourselves if you think he is worth following.

Today (Thursday 31 May) he says the charts are bearish and the market should head down (futures at the moment are indicating a move up at the opening) - mainly because of the bear flags all over the charts. His short-term target is is 1274 on the SnP about 40 points lower from where we are now, which is where the 200 day moving average is. Long-term (in a few months time) he says the markets will start heading back up as crude oil prices are falling which is a great stimulus for the worldwide economy. But he is a day trader (he closes all his trades before the markets close) so today he is shorting the market.

Here is his video for today - you can fast-forward the first 9 minutes !

For more details on using stock charts to make stock trading decisions see - swing trading tips


Stock Charting Tips for Beginners

Stock Charting for Dummies - Last Week and Next Week

The markets have been bearish recently for a variety of reasons, the euro, the Greeks, the Chinese etc... so what are they charts saying about where we are heading? First, on the SnP 1280 is a significant support line,if it goes under 1280 then we can expect it to head quite a lot further south.

However,the 'old school chartist' is quite optimistic as can be seen from this interest video below. Personally I am more negative but that may be just be negative nature and also because I'm hoping for stock prices to head lower so that I can buy them cheaper.

It is important for beginners to understand stock charts as the professionals use them to time their trades. So if you don't understand them then you are placing yourself at a disadvantage.

Chart analysis of last week and possible trend for next week

A couple of things to remember for short-term swing trading - don't buy a stock if the 5-day moving average is pointing down. And in swing trading you are looking for a profit of around 8 or 9% before selling up and moving on. It's all about risks and rewards, you need to ensure that your winners make more than your losers lose, so don't forget to sell if your trade moves down around 4%, don't hang on hoping it will bounce back, just get out and look for another one. For more details on swing trading see - swing trading tips