TECO closes week above 20 DMA

The trend is your friend. There was a flurry of buying when we broke out from 2 cents and hit 4 cents, followed by a bit of profit taking, panic selling, and good old manipulation afterwards. We even had our first closed below the 20 DMA since mid April.

However, when the dust settled the 20 DMA was recaptured on Wednesday with a close back above it, and then today the recapture was punctuated by a close above the Wednesday high to end the week.

As I keep saying folks, the trend is our friend. Price is trading above the 20 DMA, which is trading above the 50 DMA with good spacing. I always acknowledge that there will be ebb and flow to this position, as with any position. However, until we start getting a series of lower closes below the 20 and 50 DMA's, the trend is still upwards.

The concept of TREND is vital to trading. A trend is composed of a series of data points that are usually averaged together over a rolling period of time in order to give the general direction of the stock. Sure, there will be a few data points that deviate from the average, but until those datapoints have consecutive datapoints to indicate a shift in direction, it's better to focus on the trend.