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Writer's pictureRichard James

The trend is your friend

While no one can time the market, the technical indicators for these 3 charts give valuable insight into where the volume and price action are moving at a macro level. Let's look at the following 3 charts for Exxon-Mobile (XOM), ON Semiconductor (ON), and Tesla (TSLA).




Both ON and XOM have entered a major confirmed uptrend for 6 days and 13 days respectively. This doesn't mean that the price won't fluctuate or even go down in any given day or week - it will, since price never moves in a straight line. However the Signal Strength Indicator (which is based on a proprietary combination of technical indicators) shows continued upward volume and price pressure in both of these cases. This upward pressure is also observed when the black line (which is based on an exponential moving average formula) stays above the red line (which is based on a volume + price moving average formula).


Now lets look at the middle chart for Tesla. We can see that the "major trend" is still down, meaning that the Signal Strength Indicator has not yet reached a "new 5" level since it hit a "new 0" back in the first week of January. This is where it gets interesting. The Signal Score Indicator has been moving up and is now at 4. Although it has not yet reached that "new 5" to confirm an uptrend, the AI Predictive Indicator is showing 5, indicating that the algorithms expect the Signal Score Indicator to hit 5 in the next few days. If you like the TSLA fundamentals and are bullish on its market outlook for the long-term, this may be an entry point to consider for a long-term investment.


As always, do your own research. This is not financial advice.

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