Friday, April 23, 2010

PCAR Watch

The truck-maker PACCAR Inc. (PCAR) shows a parabolic sar bull signal today after a three-day whipsaw to the bear side.
trendadxpsarppsmacdmacd
trend
stosto
trend
PCAR $47.77

The bull signal is in line with an uptrend that began in early February, and an average directional index of 51 means the trend is strong.

Person's Proprietary Signal also switched into bull phase today, and both the macd and stochastic are bullish.


You are here:
  • Reversal
    • $53.73, +12.5%
    • $51.25, +7.3%
    • $50.41, +5.5%
    • $49.24, +3.1%
    • $48.42, +1.4%
  • Now $47.77
  • Reversal
    • $44.81, -6.2% 
There is a steady stream of resistance levels to the upside, marking the stock's decline from its peak in 2007, before the recession kicked in. But the reversals are nicely spaced, and I see good upside potential.

The stock goes ex-dividend on May 17, with a 9¢ payout, so it would be wise for option holders to be out of the position before that point.

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Technical analyst Martin Pring reveals the secrets of the craft. No trader should be without this book.


This signal will be followed in the daily Watchlist, which is posted beginning around 2:45 p.m. Eastern. Look for it at www.timbovee.com.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic


About the glance: The colors indicate the state of each signal.

  • trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
  • adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
  • psar, pps, macd: green for bull mode, red for bear
  • sto: green for overbought, red for oversold, yellow for the neutral zone.


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