Posts Tagged ‘investment strategy’
America’s Retail Markets: Part III
Our next step in this ongoing series is to examine Best Buy Co., Inc. After reviewing Gymboree Company in our next installment we will sum up the Macro Outlook from a fundamental aspect. Economic analysis will guide us mainly, but also the technical analysis which we have done on our chosen market representatives and a look at Market Sector ETF’s that track the US Retail Markets will help us to grasp the subject thoroughly.
Best Buy is currently in a Daily short-term downwards trend as the Daily Chart below shows. There is a good chance that this will continue for the next few weeks or even longer. However, the Monthly long-term trend points us upwards and it is established technically. For the short-term– “easy money”– and less headaches the recommendation is sell-short and set a stop 3% above current market price. That is above daily ATR and the prices aren’t expected to change so drastically overnight and eat this price level stop.
This is the way the Daily Chart looks:
For the long-term investor, the recommendation is the opposite: buy long and buy and hold, watching the weekly charts mainly and not being too confused with the daily activities. There is a strong resistance line above the monthly prices, and it is expected to be a trial for the price-levels. but this is expected only within a few months, though tracking progress in the aforementioned way is necessary and wise.
This is the way the Monthly Chart looks:
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Why Is Technical Stock Market Analysis Crucial For Success?
Whether you are venturing into the Stock Market as a full time endeavor or just planning to use it as your secondary source of income, you need to first understand the basics of the stock market so that you can make the best use of every investment opportunity that comes your way. Added to that, it is important that you approach the Stock Market in a highly professional way so that your investments are fully guarded against risks.
When it comes to personal financial investment in stock market, you cannot expect to be 100% free from risk. However, every successful stock market investor tries to minimize the risks as much as possible. Even the most experienced stock market investor is not completely without risks. The only difference between a professional stock market investor and a rookie is that, the beginner will not know how to minimize his or her risks.
You will be able to minimize your market risks by improving your abilities in Technical Analysis. All your investments should be supported by sound Stock Market analysis. The Stock Markets are not a game of luck. If you are relying on your luck, then the best place for you would be a casino and not the Stock Market.
Before you approached the Stock Market, you should have done your homework. You should assess market trends and make use of all the professional support and help that you can. One of the secrets of making effective market analysis lies in one’s ability to make the right associations. You should be able to associate various happenings across the globe and make intelligent connections. This, of course, is not an easy task but it requires a lot of experience. As a beginner, you are bound to feel overwhelmed with the technical terms and with the jargons. These have made many beginners give up totally on Stock Market Analysis. Such people end up making their investment decisions based upon their gut feelings or on their friend’s advice without fully reviewing their choices.
This will not be the best way to approach the Stock Market as this will only increase your risks. Rather than making random decisions, you should find some reliable help. There are a number of resources on the internet that you can use today readily. You should also constantly update yourself with all the basics required for making sound Technical Analysis. At TechCharts4You.com you will find the best resources available on the internet. All the resources are made available to you here free of coste. By making use of such resources your abilities will gradually improve over a period of time. You will also be able to make accurate Stock Market predictions based on Stock Market Analysis once you learn the game.
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EUR/JPY–The EuroDollar vs. the Japanese Yen
The Euro seems to be doing not so well lately. It has lost ground to the British Pound, Australian Dollar, and this past month the little Yen of Japan, usually held down by its own government, has joined this world wide upside down rally, if you will. Check out the perfectly symmetric tunnel it is taking on its downwards trend. The RSI shows the trend clearly. It is approaching a rather significant support line that may cool off the strong downwards fall it has taken to the Yen lately. This resistance may indeed break this strong trend as it has broken the long downwards trend before it as shown in the left side of the Chart below. The Chart shows the strong support extending just below the current market price. Add to this the fact that the RSI is getting close to being oversold and is approaching, at this rate, oversold territory, and you have a picture of a possible trend reversal that is worth looking at for investment as close as a few days from now.
This is how the Chart looks:
