The Dow Breakout

The Dow broke a triple top formation, quite a positive sign. While that is an indicator of the Dow 30 it is not an indicator for an individual stock. You need charts on that particular chart for better indicators. Notice the downward red line. That is a resistance line. Often stocks or the DOW will bounce downward after touching that line. If that line is broken it is a very positive sign. The DOW is not in what I call never-never land, between the red line and a new line drawn at a 45 degree angle from the low at 15450. While it is between the two I, as a conservative investor, would not buy anything until I get a better signal. The DOW may well act as a crab going sideways until it breaks on or the other line.

The chart is from: www.stockcharts.com

 

Poncho, very early on when I started investing I learned never to listen to the advice of brokers or financial advisers. That is the way to lose money quickly. If they were as good as they want you to believe they would not have to work to earn money. They could stay home and earn all they need.

The way to earn money is to find a charting system with a good record and follow it faithfully. The wisdom of the chart is a much better indicator. I speak from experience. I was introduced to point and figure charting by a man where I worked. I experimented with it, found it a good system and followed if faithfully for three to thee and a half decades. I am at a stage in life to preserve capital and I now only look at the chart from an academic point of interest.

There are other charting systems that are good and where you can make money if you follow them faithfully and do not let emotions get in the way. If you are interested we can chat about them and I will let you know what ones I believe are very good ... again if you follow their buy and sell signals faithfully.