$TECO on brink of MACD cross
Typically I focus purely on the daily candles, simple moving averages, and volume. However, it's useful to take a look at the MACD when there is divergence from price or some kind of cross over. It is a lagging indicator so it is not worth it to check every day, but we are in a period of time where it could be giving us a very good signal.
The primary signal I like to watch for on the MACD is the cross over of the faster MACD line over the slower line. [ For more details on what MACD is and how it works please refer to: http://stockcharts.com/school/doku.php?id=cha...rage_conve ]
If you take a look at the chart below you will see that I have marked the last 6 bullish MACD cross overs which all preceded pops in $TECO. The MACD flattened out in September, so in other words it stopped going down, and the faster MACD line is starting to turn back up and bump against the slower MACD line. It is so very close to crossing to the upside which would indicate based on the past history, that a pop is near on the stock.
This indicator, seen in the context of the impending news catalysts such as Belize, E. Texas, W. Texas, or the 10 Q, tells us that the market is starting to anticipate something big happening on the near term horizon. Yes, we did have some lower closes recently, but the chart is telling us that the downward momentum is dying out. This sets the stage for an inflection point at the low and eventual upward momentum.
Let's see if other big buyers joing Citadel down on bid this week, because if I can see this indicator on the charts, I'm sure that the big boys can see it, too.
[IMG]http://i.imgur.com/LBpZG.png[/IMG]
