Bullish divergences at play as Tuesday's gap breakdowns tempt....
There is one stock for today, Contango Oil and Gas (MCF) available in the free section of my main website and made available to readers of my newsletter.
As for the markets it is still a waiting game to close last Tuesday's gap breakdowns, although the 20-day MAs are likely to get in the way first.
As a sidenote, there is an interesting divergence at play in the Percentage of Stocks above the 50-day MAs. When the market bottomed in January only 15% of Nasdaq stocks were above their 50-day MA. This rose to 26% as the market made a new closing low for February. This divergence is further supported by the bullish divergences in the Ultimate Oscillator and MACD trigger line. Also look at how a negative divergence played out during the October top.
As for the markets it is still a waiting game to close last Tuesday's gap breakdowns, although the 20-day MAs are likely to get in the way first.
As a sidenote, there is an interesting divergence at play in the Percentage of Stocks above the 50-day MAs. When the market bottomed in January only 15% of Nasdaq stocks were above their 50-day MA. This rose to 26% as the market made a new closing low for February. This divergence is further supported by the bullish divergences in the Ultimate Oscillator and MACD trigger line. Also look at how a negative divergence played out during the October top.
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