When buying stocks, we use a combination of both fundamental and technical analysis. When it comes to selling stocks, we rely mostly on technical analysis.

 

The most classic sell signal is a break of the 10-week moving average line on high volume. Since institutions typically support their positions at the 10-week, a breach of that support level would be an indication of institutional selling.

 

 

Another sell signal to look out for is the largest one-day point loss. Each stock has its own unique personality. Following your stock daily will help you develop a feel for what is normal and abnormal in the way it trades. A stocks biggest day down will give you confirmation that the personality has changed, and distribution may be imminent.

 

 

To learn more, click here to view this week’s webinar on “Using Technical Analysis to Identify Sell Points”. If you have any questions, you can reach us at (800) 424-9033 or at reachus@marketsmith.com

 

 

Best Returns,

 

The MarketSmith Team