Too be honest, I am getting a little scared. It seems like some of my consumers from Chart Pattern Manifest are starting to get better than me at picking stocks, but I guess that means more money for me anyways.
First we had a CPM student recommend JDSU, which is running nicely so far. Now he hits us with potentially a game changer for anybody’s portfolio. Don’t believe me? Take a look…
If we look at the chart of Clearwire Corporation (CLWR), then we can see that we are at a point of decision. Will the stock clearly breach the 200 simple moving average, or will it bounce back down? Remember the 200 SMA is regarded as a trend changer. So if it crosses then that is good indication that the stock is heading higher.
While we can see that we are playing around with the 200 SMA, what is even more telling is zooming out a little further. In fact, almost 3 years…
From this chart, we can clearly see that, since first falling below the 200 SMA, Clearwire has never been able to breach back above. This makes our 200 SMA even that much telling. I think you can tell where the stock should go if a clear break occurs.
My personal recommendation would be to buy now. Why… because the location of the 200 SMA allows us to be more aggressive with a pretty substantial stop already in place. An initial quick price target of $6.50.
Have no idea what I am talking about? What to learn how CPM consumers are picking such great stocks, SO QUICKLY? Well here is your chance to finally learn technical analysis quickly and easily.