Stock Chart Analysis NST

Posted by downtowntrader | 11/25/2007 09:49:00 PM | 0 comments »

Stock Chart Analysis NST


As I was going through the utility sector this weekend, I noticed a nice cup and handle forming in NST. The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. It was developed by William O'Neil and introduced in his book, How to Make Money in Stocks. This is a book I like by the way and usually recommend as a good book for those just getting started in trading.

If you dig a little deeper, you can see a couple of other smaller patterns that helped construct the larger pattern. There was a reverse head and shoulder that formed the bottom of the cup. The breakout has been followed by a sideways consolidation that could be considered a "handle". If it does indeed clear the handle then the target measures out to near $40. Not a wild mover, but there is little risk here as well.

Good Trading,


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