Get Back on the Grid
- Posted by Greg Harmon
- on July 24th, 2012
With Apple trading down more than $30 as I write this clearly you need ideas for a falling market? Why, you ask? Well because I heard on the television one of those nice young traders say ‘as Apple goes, so goes the market’. I am not so sure about that but they seemed pretty adamant. Just so happens that I have been looking at a beat up utility name that will fit the bill, National Grid, $NGG. Looking at the daily chart below shows that National Grid had been taking it on the chin since topping July 13th at 54.47. Since then it has fallen over 8%. But more importantly technically it has retraced 38.2% of the move higher as of Monday with a bit of an overshoot Tuesday. It could still go lower but the last two days it has printed Hammer reversal candles that have been outside of the lower Bollinger band. The fall has also helped to increase the dividend yield to over 8%. This timeframe suggests that it may hold here or at the confluence of the 200 day Simple Moving Average (SMA) and the 50% Fibonacci retracement near 49, and a quick glance at the weekly chart shows this coincides with the 50 week SMA as well. Keep your eyes open for the bounce.
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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