Selected Charts 16/11/2010

The following is offered only as educational discussion and not as investment advice. It represents only my personal opinion and should not be construed as buying or selling advice. You must do your own research. And take full responsibilities for your own actions.

Above are charts for three stocks I've been illustrayinh to people on my email list. I'll take them from top to bottom: SUN, IAG, AMC.

SUN. This stock is looking good.

• Slow Stochastic has risen above its signal line and the 20 level.
• RSI is above 50 and has broken above its down trend line.
• The stock chart has broken above its down trend line.

The MACD still has not broken back above its signal line. If that occurs, SUN becomes a "buy".

IAG is more ambivalent than SUN.

• Slow Stochastic is in oversold territory. A cross above its signal line and above 20 would be positive.
• RSI is above 50 - the dividing line between bull and bear markets
• The stock chart shows three doji candles in the past three days.

The market is undecided. But appears poised to break to the upside. Don't pre-empt the market.

AMCOR

The Slow Stochastic is down in oversold territory so a bounce to the upside is probable. Nothing in the indicators or the stock chart indicates that is actually occurring. Watch for indications of an upturn:

• a cross by the Slow Stochastic above its signal line and above the 20 line
• a swing by the RSI back above the 50 line
• a swing ny the MACD back above its signal line.

Completion of all three would be a "buy" signal.

Good luck

Red