Chart Request: TradeStation Group (TRAD)

Ben said:

What do you think of Tradestation (Nasdaq: TRAD). I was thinking about going long.

By the way, do recommend any trading software or books?

Oh, the book!!! Sorry, had a Cramer moment. See the list of books in the left column on the main page or some of the books in the books/reading category archive.

As for software I used to recommend TeleChart but it has so many annoying bugs these days. If there was something else close to it I’d switch in a second but I guess I’m trapped..

So on to TRAD — It just completed a very bullish cup pattern which is show on the weekly chart below. I’d certainly be watching for a breakout from that cup. But I’d also watch for it to pull back and form a cup & handle pattern.

In the shorter term, I think it could pull back all the way to its 50-day moving average and still be healthy. Of course for those who bought much higher it might not feel so healthy! If I wasn’t in it I might try to pick some up near the lower trendline or on a breakout above the upper trendline.