InvestedCentral
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Today's Chart of the Day is Energy Transfer Partners LP - ETP. ETP is a $9.2 billion basic materials company that engages in the natural gas midstream, and intrastate transportation and storage businesses in the United States. This is an educational chart. We always see a lot of questions relating to "when to sell" a stock. As a trader, it's important to recognize the signs of waning momentum on the long side. This generally is a strong signal to sell, awaiting re-entry at a much lower price. From the May lows to the August highs, the MACD pointed higher throughout the trend higher until the last high in early August. Note at this high, the MACD had clearly moved to a lower level. This "convergence" was a sign that bullish momentum had slowed. While it never represents a guarantee of lower prices, it certainly provides adequate warning of the potential for lower prices in the near-term. We'd look for at least slightly lower prices and a 50 day SMA test before the bulls are likely to regain control.
