Bullish patterns that occur on key support levels lead to high winning probability in stock trading. That is why I check my custom indicator in NinjaTrader every morning. Due to US stock market’s wakeup call 2 days ago, the indicator sorted out more than 20 stocks with bullish signals. Traders are advised of discretionary trading and not mechanical trading by combining the custom indicator with other technical analysis’ tools and theories. Valuable long trading signals arise when for example the bullish pattern is completed on a key support level, such as 200-day moving average, or during MACD divergence for trend reversals.
Atmel Corporation (NASDAQ:ATML) stock is up 12% since shares touched the support level at the monthly stock graph. The bullish pattern coincided with MACD divergence in the daily graph and RSI also pointed out oversold conditions. ATML shares gained 5.06% during Wednesday’s trading session.
Interpublic Group of Companies (NYSE:IPG) daily stock graph is an excellent example of a bullish pattern completed exactly on the 200-day moving average.
AES Corporation (NYSE:AES) stock graph also indicates the key support level of the 200-day moving average. The bullish candlestick pattern on Tuesday along with MACD divergence offered a great entry point for stock traders. AES stock closed 3.58% up yesterday.
Plantronics (NYSE:PLT) stock experienced minor gains (2.10%) during the day, following a 7% up day (Tuesday). The tech stock bounced off the upward trend line shown in the weekly stock graph below. Once again MACD divergence and RSI being lower than 30 points should have invited traders to go long PLT two days ago. Position traders might hold onto their position until PLT stock potentially reaches $39 per share and swing traders would exit at the 200-day moving average ($34) most likely.
Surging Motorola Solutions (NYSE:MSI) stock is another fine example of bullish candlestick formation being drawn on the 200-day moving average. The stock resumed its uptrend by gaining $2.5 in the two last days.
Bonus: Iron Mountain Inc. (NYSE:IRM) stock was one of the custom indicator’s best performers in Wednesday’s trading session. The stock ended 1-year decline with a 13.80% up day!