|GTN is looking like a stock that is about to start its next major upswing.
It had a great run up and then had a major pull back down to (and actually below) the 50 period Moving Average (on the daily chart) and is now starting to move back up.
First, the weekly chart...if you are looking to catch a major swing, you should always start your analysis with the weekly chart. Here it is:
Notice the weekly chart is in a very nice uptrend (first requirement). Next notice that GTN ran up to $15 before dropping back to about $10 where it touched on the 26 week Moving Average and bounced off. On the weekly, this stock could have been bought two weeks ago. (we will look at the daily chart further regarding the entry).
Also notice the MACD histogram at the bottom starting to slope back up toward 0 at the same time the stock's price is starting to move up again.
Let's look at the daily chart now:
Two weeks ago, the prices on the daily chart were below the 50 day Moving Average. I never like to purchase stocks below this moving average as it acts as strong resistance when a rising stock hits it. Notice that GTN broke through the Moving Averages briefly and then dropped below again. Today was the first day decisively above the moving averages on very strong volume.
It is like the first Spring day of the year. It is the first day you notice..."hey, this is a nice sunny day, winter is over!" Now we are hoping for clear skies above.
There is really no resistance for the stock to overcome now until it reaches the prior high of $15. AND, if this stock is truly in an uptrend, then it should hesitate at $15, but for it to continue its uptrend, it has to break through $15 and continue up to a higher peak.
We will look for a minimum target of the $15 area which is a $3 gain per share (25% return). I would expect the rise to be complete within a month or so.
I purchased GTN today at $12.02
Let's see how this trade goes. Any comments are welcome!