Category: MarketClub Techniques, Tips & Talk

Tips and trick from traders on how to become a better trader.

Like Clockwork, Freeport-McMoRan (FCX)

Posted on by The INO.com Team

One of the many benefits of MarketClub is having a great network of traders who use our service and share their ideas. This particular stock idea came from Harold, who has been a member of MarketClub for several years. Harold shared his stock idea with other members of our Member Blog yesterday.

This morning, I decided to take a look at Harold's stock idea, Freeport-McMoRan (NYSE:FCX). What immediately caught my attention was the rhythmic nature of this stock and how it almost performed like clockwork.

1. RSI indicator
2. Downtrend line and breakout
3. Major low established after trend line breakout
4. First cyclic low, 28 days after major low
5. Second cyclic low, 23 days after previous low
6. Third cyclic low, 28 days after previous low
7. Potential fourth cyclic low, 26 days after previous low
8. Potential upside target $40 Continue reading "Like Clockwork, Freeport-McMoRan (FCX)" →

Exxon Mobil - The Surprising Big Chart Picture

Posted on by The INO.com Team

While viewing my energy portfolio this morning, I stopped and looked at the chart for Exxon Mobile (NYSE:XOM). I immediately noticed major resistance coming in at the $95 level. Can Exxon break through this major resistance level and take off to the upside?

If I measure from the resistance at $95 all the way down to the low in July of 2010, the difference is around $35. If I then add $35 to the breakout point, it takes us to my target zone of $130 per share for Exxon. Now remember, the market must move over the $95 level for this to happen.

Let's take a look at what we can see on the chart. Continue reading "Exxon Mobil - The Surprising Big Chart Picture" →

A Chart Setup I Really Like

Posted on by The INO.com Team

Today, I'm going to be sharing a chart setup I think has a lot of potential based on some of the technical studies I use here at MarketClub.

The chart I am analyzing is Cliff Natural Resources (NYSE:CLF).

At number 1, I have drawn a downtrend line from the high around $100, all the way down to where the trend line was broken in late July of 2013. Generally, the longer the trend line, the more powerful the move when it is breached. This trend line on CLF lasted a little over two years and touched three distinct points, confirming it as a valid trend line. Continue reading "A Chart Setup I Really Like" →

A New Way To Look At Netflix

Posted on by The INO.com Team

It has been a little over 11 months since the first major buy signal in Netflix (NASDAQ:NFLX) at $84.95 on December 4, 2012. I have remained bullish on the stock since that time, which turned out to be one of the best trades for the year so far.

Today I would like to share with you how to use the Relative Strength Index (RSI) to enter a position in any up-trending stock. When a stock pulls back, it is difficult to know how far that stock will fall. This is where the RSI comes in and can be an enormous help. When the indicator moves over 70, it is considered overbought and conversely when the indicator moves below 30, it is considered oversold. This was the original thesis of Welles Wilder when he developed the RSI back in the mid-70s. Later it was discovered that when a stock pulls back to the midpoint of 50 or just below, it actually finds support.

In my Netflix (NASDAQ:NFLX) example, I have highlighted both the price and the RSI support in yellow. The horizontal line at 50 on the indicator is also highlighted in yellow. As you can see on the chart, Netflix fell back to support twice during the last four months. Each time the RSI touched or moved just below the 50 line, it found support and made a strong recovery rally.

Yesterday, November 4th, Netflix (NASDAQ:NFLX) had its second highest close for the year. With all of the Trade Triangles positive on this stock, plus it has just come from an RSI support area (number 2), I expect to see this stock trend higher in the weeks ahead.

The moral of this post is, whenever you see a strong uptrend, you might want to check out the Relative Strength Index (RSI) for a low-risk entry point.

Adam Hewison
President, INO.com
Co-Creator, MarketClub

3 Stocks To Sweeten Your Portfolio

Posted on by The INO.com Team

Halloween costumes and confectionery sales move into high gear tonight as millions of children will dress up and go trick-or-treating.

I thought it would be fun to take a look at the sweet side of the market and pick out some "sweet" stocks for you.

I have three stocks to satisfy your sweet tooth today:
Nestlé SA (NASDAQ:NSRGY)
Hershey Co (NYSE:HSY)
Mondelez Intl (NASDAQ:MDLZ)

All three stocks are in a positive mode based on the Trade Triangle technology and look to go higher.

The stock I'm analyzing in detail is Nestlé SA (NASDAQ:NSRGY).

1. Classic Uptrend Line Continue reading "3 Stocks To Sweeten Your Portfolio" →