HERE ARE SOME MORE CHARTS TO PONDER

I want to teach some technical analysis since I am a technical trader after I use http://www.investors.com/ to analyze some stocks that I am interested in buying or selling.

The first one is FLIR. This chart does not show it, but FLIR broke out a 52 week high in early April near $37. I have waited for a rest and it just presented itself. FLIR traded up near $44 and has retraced down to $41. As you can see on the chart this set up a symmetrical triangle formation. (click on the link to see a definition of a triangle). The triangle was broken to the upside and buying up to $43.35 is OK. The reason why I say $43.35 is that this is 5% above the breakout point of $41.25. http://www.investors.com/ does not recommend buying at any point beyond 5% from the breakout. So there is the logic. I am going to set an initial target price of $45.25 since the ascending triangle has a price range of $4.00 and I added that to the breakout price of $41.25. A second target would be at $8 above $41.25. Why? Well, the old 52 week high was $36.36 and the most recent high was $44.14. That is near $8 ($44 - $36) and I am going to set a second target at $49.25 (breakout of $41.25 + $8).

The next stock is FMCN - a Chinese company. As you can see on the chart, FMCN has just broken out of a cup with handle formation. This is a good formation to show that the price of the stock may take off again. The pivot point is $45.55 and FMCN is right there. Again, don't buy more than 5% above the pivot point of $45.55 which means buy up to $47.85, but no further.

HURN is pitching an ascending triangle, but I don't know which way it is going to go. If a trader was to look at the price action from Friday, it might scare you away since trading volume was high and the price went down. If HURN breaks ABOVE $69.50 on HIGH TRADING VOLUME, then it would be a buy. However, if the stock falls BELOW $66.25 on HIGH TRADING VOLUME, shorting the stock would be the plan of attack. To make things simplistic:

BUY if the stock moves ABOVE the top red line. SELL if the stock falls below the diagonal lower red line.

Drawing trend lines on a chart that covers a year time span will really help a trader out in determining entry/exit points.

GOOD LUCK TRADING.

JD