Swing Trading Technical Analysis – Swing Trading BOOT CAMP
In this BLOG post we will continue our Technical Analysis view on $MOS.
If your missed part one you can view it HERE.
We when last looked at $MOS it had just created another LOWER HIGH and was "stalling" near an area of potential support ($73).
The thick BLUE horizontal line in the chart above marks this support area.
We also posted that in order for the DOWN TREND to continue we would need to see PRICE move LOWER and VOLUME move HIGHER.
We have zoomed in a bit on the chart and annotated our comments as well.
Two days after we posted our analysis $MOS did push LOWER ON HIGHER VOLUME confirming that the DOWN TREND was still intact.
We marked this as #1 on the chart.
$MOS quickly lost steam and two days later put in a HIGH VOLUME day but closed very near the low fo the day.
The SELLERS were still there!
$MOS continued to trade "sideways" (#2.) until May 11th when PRICE again moved LOWER and VOLUME INCREASED (#3.)
This created another leg down in the already established DOWN CHANNEL (orange).
After another day of trading a bit lower $MOS again traded "sideways" (#4.) until today when we watched $MOS trade above yesterdays high on increased volume.
Now even though $MOS has technically started a retrace it is still in an obvious DOWN TREND.
Notice above how $MOS is still trading inside it SHORTER TERM TREND CHANNEL (thick ORANGE LINES) as well as its LONGER TERM DOWN CHANNEL (thick BLACK LINES).
How and where you could have entered and exited a trade in $MOS depends of course on your time frame and style of trading.
As we move forward from here we apply the same logic and let price action and volume tells where $MOS is headed.
A BREAKOUT of the SHORT TERM TREND CHANNEL would NOT excite us to much at this point since there are now a bunch of resistance levels to contend with.
The LONGER TERM chart of $MOS tells us that $65 has acted a a pretty major area of support in the past.
That being said another move LOWER on HIGHER VOLUME is something we are definitely on the look out for.
If this Swing Trading Technical Analysis walk through was helpful to you please leave a comment below.
Tags: Learn Swing Trading, Learn Swing Trading Strategies, Swing Trading Stocks, Swing Trading Technical Analysis, Technical Analysis
