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Home | Getting Started | Personal Finance | Q & A | Sample Portfolio | Glossary | About Us |
| Date: Thursday 15th 2008f May 2008 08:14:09 AM |
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Q & A - Uptrend in Technical Analysis - 04/09/2008 |
| By: Hari Wibowo |
| Name: pankaj |
| Website: N/A |
| Date posted: Wed, Apr 09, 2008 |
| Question: What are uptrend in technical analysis? |
| Answer: |
| A very brief yet meaningful question. In technical analysis, there are three types of trends; uptrend, downtrend and sideways. As the name indicates, uptrend in a technical analysis indicates a chart whereby a particular stock is rising. The basic of technical analysis states that stocks in an uptrend will continue to go up and stock in a downtrend will do the reverse. Therefore, it is important to know what trend your stock is at. |
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Stock in an uptrend always move within its trend channel. Within its trend channel, there is the bottom and the top part. Please note that the bottom and the top of the uptrend channel is always parallel. Otherwise, an uptrend cannot be defined. The following graph courtesy of bigcharts.com illustrates this issue: |
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| The chart is a one year chart for USO which is US Oil Fund ETF. Since USO tracks crude oil identically, we can pretty much say that crude oil price is in a one year uptrend. Another example would be on the next chart below (courtesy of bigcharts.com), showing Kinross Gold Corp. (KGC), which is in a gold mining industry. Although gold price has pulled back to below $ 1000/ Troy Ounce recently, KGC chart shows that it is still in an uptrend and thus bullish implication. |
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| Hari - Novice Investing |
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| Disclaimer: The sole purpose of this article is educational. This article is merely the opinion of the writer and is not in any way a buy/sell recommendation regarding any securities. |
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