Yesterday, we looked at a Keltner Channel chart of Taiwan Semiconductors MFG, and noted that it was on a pullback from being overbought.
Today’s Chart of the Day is a Daily Price chart for Brookfield Asset Management Inc. (NYSE: BAM).
Brookfield Asset Management is one of the largest, leading global investors in real assets. It focuses on real estate, renewable power, infrastructure and private equity assets.
And it’s been on a bull run for a year now.
You see, the Daily Price chart below shows that BAM has been making a series of 52-week highs for the last year.
Plain and simple… a stock just doesn’t hit a new 52-week high unless it is in a very powerful uptrend.
But you’ll almost never see stocks in a price uptrend advance in a straight line.
The stock price always retraces along the way.
BAM experienced periodic price pullbacks during its strong advance for the last year… allowing traders to get in at lower risk entry points after a 3-5% retracement. The stock normally resumed its price uptrend after such retracements.
We’re going to keep following BAM and watching it climb higher, while we wait for price retracements.
In other Chart of the Day news…
On November 5, we highlight Apple, Inc. (NYSE: AAPL) and pointed out it had also been making a series of 52-week highs.
If you happened to have purchased AAPL shares on that day, you’d already be up 2.08%!
But… if you had purchased the right option contract, you would be up 30.8% in just nine days.
That’s the power of options!
And that’s exactly what my PowerTrend Options service does for you — it shows you which option contracts to use to beat the gains of simple stock purchases.
Click here if you missed the webinar that explains the whole system.
Editor, Chart Of The Day