Technical Indicators and Charts

[NitroZ7]

I know nothing about them and usually pick a stock based on the business and valuations. I'm mostly a value investor that likes dividends but did bite the bullet and buy a few growth stocks for diversity. The question I have is if you are buying for the long term does technical analysis really matter or is it more of a tool for those that like to trade? I guess it could help finding the best entry point but if you plan on holding something for awhile is it worth educating yourself on charts and patterns?

[boneil]

Fundamentals tell you what to buy and Technicals tell you when to buy. I would say that it depends on how active you want to be in investing. But it can definitely help, especially with growth stocks or popular stocks. I use technicals to tell me when to add and when to lighten the load.

[NitroZ7]

Is there a site or service you use that will give you the information or do the analysis?

[lukethedog]

Think or Swim.. you can set up a paper trade account with a delay .

[bluejay10]

What stock are you wanting a analysis over?

[NitroZ7]

What stock are you wanting a analysis over?

was thinking about selling Wal Mart. Bought it awhile ago at 53 and thinking it may be time to cash out of the position.

[bluejay10]

My opinion from a chart perspective looks like next resistance level is 73 area since it broke through the previous resistance of 68 area. If it does fall have supports around $68 and $66.

[NitroZ7]

Nice pick up at those lows. My opinion from a chart perspective looks like next resistance level is 73 area since it broke through the previous resistance of 68 area. If it does fall have supports around $68 and $66.

Was looking to put a sell order in around $70.00. I picked up Starbucks and CVS awhile go and will let those fill the retail sector in the portfolio.Just sounds like Wal Mart may have its best days behind it.

[bluejay10]

http://stockcharts.com/h-sc/ui?s=WMT...d=p19688148113

ADX does start to look bearish though and full sto looks to have peaked or getting there. It did have a big bullish engulfing thought on the daily.

[bluejay10]

ya just opinions for all we know wal-mart could go back up to $90. I was a full bear 8 weeks ago.....

[NitroZ7]

ya just opinions for all we know wal-mart could go back up to $90. I was a full bear 8 weeks ago.....

I'm kicking myself for not selling at 90

[boneil]

http://tos.mx/caqGYQ

Let me know if the link doesn't work to a WMT chart

WMT imho, is in a near perfect "rising wedge pattern". Typically once the wedge pattern is broken, that will tell the direction. So if the price breaks to the upside, then there is an open gap between 70.50 and 71.75. Clear overhead supply/ resistance in the 73 area. If price breaks to the downside, which I think happens more often than upside, then there could be a good amount of downside. Of course there are always, fakeouts to run buy and sell stops.

[NitroZ7]

Ended up selling at 69.30 today. It wasn't a lot of shares so I figured another chance at two points wasn't worth the risk. I sold AT&T also after the big run up. Keeping the Verizon shares though.

[NitroZ7]

http://tos.mx/caqGYQ

Let me know if the link doesn't work to a WMT chart

WMT imho, is in a near perfect "rising wedge pattern". Typically once the wedge pattern is broken, that will tell the direction. So if the price breaks to the upside, then there is an open gap between 70.50 and 71.75. Clear overhead supply/ resistance in the 73 area. If price breaks to the downside, which I think happens more often than upside, then there could be a good amount of downside. Of course there are always, fakeouts to run buy and sell stops.

That chart worked. Thanks for posting it. I may need to get some books on reading charts. I've always been pure fundamental but I think I may be missing out not learning about technical analysis.

[truman lake andy]

IMO, The market movers, "the big fund managers", use it, You should too. Check out Fibanacci retracements, it's amazing how close they are sometimes.

[BoatBuggy]

I may need to get some books on reading charts. I've always been pure fundamental but I think I may be missing out not learning about technical analysis.

Technical Analysis of the Financial Markets by John J Murphy is considered by many to be The Bible of technical analysis. I have a well worn copy beside my desk.