This Is Why You Should Check Weekly Charts

Many traders and investors look at longer time frame charts to check the directional bias of the stocks. For example, if a stock is exhibiting a strong uptrend on its weekly chart, we can get a better buying opportunity when the stock begins to pullback from the high on its daily chart.

10:43:32 (From TradersWire)
Daily Setup Alert
QLogic Corp (QLGC) is bouncing off its 200-day EMA. Long QLGC if it takes out 32.90. Target is the November 8 high (33.74). Place a stop below today's low (32.31), or risk 1.00. QLGC is at 32.81, up 0.61.

As you can see below, the 200-day EMA has been a strong support for QLGC. It sold off yesterday, but the MA was never violated. Also notice, the stock is forming a trading range. Can it break above the range?



Now, switch to the weekly chart. QLGC is shaping an inverse head-and-shoulders pattern. It has already taken out the neckline. It appears the issue is ready to take out the November 8 high.



Have a profitable afternoon session!

T.Kamada

If you have questions, feel free to mail them to me.