You want to invest in the right companies at the right time. Oracle started a seven-month base last year in early February. The database software giant crashed in March after issuing a profit warning, but found support in early April. The stock moved higher in heavy volume in June, then formed a long handle. Finally, it broke out on Sept. 3 in active trading.
Technicals are even more important when it's time to sell.
Usually a stock chart will start showing warning signs well before the company's sales or earnings fall apart. When a stock sells off in heavy volume for several days, the market is saying there's something wrong. That's better advice than anyone on Wall Street can give you. Write to our Education Specialists. All Rights Reserved.