Page 1229 - How to Make Money in Stocks Trilogy

Don’t Invest Blindly: Use Charts to See the Best Time to Buy and Sell 211

Stock 5: Xerox – 1963 Price 90
Weekly Chart 80
70
Chart Patterns Don’t Change
60
Xerox broke out of same bases in
1963 as earnings soared from its Breakout
revolutionary copier machines. 50
3-weeks 46
tight 42
Breakout 38
Flat base 34
30
Strong RS line 28
26
Cup-with-handle
Heavy-volume 5/1 Stock Split 24
Strong RS line buying 22
Huge volume on and Big volume Volume
after breakout
320,000
160,000 © 2013 Investor’s Business Daily, Inc.
80,000
40,000
20,000
Dec 62 Mar 63 Jun 63 Sep 63 Dec 63 Mar 64
Xerox increased 660% from April 1963 to April 1966.

Stock 6: Dick’s Sporting Goods – 2003 Price
34
Weekly Chart
30
Breakout 28
26
24
22
Support 19
Regains 17
10-week
Support line 15
week 14
13
12
RS line strong
11
Low in second leg down 10
undercuts low in first Heavy-volume up weeks within
© 2013 Investor’s Business Daily, Inc.
base shows institutional demand
Volume
1,960,000
1,120,000
640,000
360,000
200,000
Mar 02 Jun 02 Sep 02 Dec 02 Mar 03 Jun 03
Dick’s Sporting Goods increased 181% from February 2003–April 2004.
Stick with It!
Keep improving your chart-reading skills—while also building a timely
watch list—by regularly watching the Daily Stock Analysis and Market
Wrap videos at Investors.com/IBDtv.