The Greedy Trader Weekly Analysis
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Uptrend reversal signals

Have you ever bought a stock at the top? As statistics shows, most investors often buy stocks at the top and sell near the bottom. An uptrend exhaustion alert is a warning signal of an uptrend nearing its end and of the high probability of a trend reversal. This is often the time when most people buy the stock based on great past performance and the company's optimistic outlook. An uptrend exhaustion alert presents a chance to sell overbought stock.

The Microsoft (Nasdaq: MSFT) chart below shows uptrend exhaustion alerts issued by on October 26, 2007 at 35.03 and on November 2, 2007 at 36.06. The price hit the major top on November 2 at 37.5. Five month later MSFT was trading as low as 26.87, losing more than 25%.
Down trend reversal signals
The next example below shows uptrend exhaustion alerts for the ALCOA INC (NYSE: AA). These uptrend exhaustion alerts were published on June 1, at 41.5 and July 13, 2006, at 47.35. AA hit the major high on July 16 at 48.77. During the next six months, the price had dropped more than 40%, reaching 26.69 by January 23, 2008.
Down trend reversal signals
An uptrend exhaustion alert warns investors that the bottom might be near, and the risk/reward ratio is high. You can find the list of the latest downtrend exhaustion alerts at Downtrend Exhaustion Alerts page.
You can find the list of the latest uptrend exhaustion alerts at Uptrend Exhaustion Alerts page.
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Warning: presents weekly analysis. Technical indicators and trend parameters are calculated for the close of business day indicated on the top right corner of the screen.