Equity Oracle: 08/01/13

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Solar Winds, Com. (Ticker: SWI) gapped down last week and have fallen below the 20-day moving average. Normally we would not buy a stock that has broken down below its SMA, but in this case the gap makes this a very attractive candidate.

Take a look at the chart and you will see several bullish signs: (1) the stock has pivoted off of the role reversal support level; (2) we have a green candle today; (3) after the stock gapped down, the volume continued to decrease, telling us the selling momentum is slowing.


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AJ Monte

About AJ Monte

As a premier trading consultant, AJ is one of the most sought after in his field. He teaches professionals specialized techniques on how to accumulate and protect wealth through innovative market techniques. TheMarke__404+

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