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TradingMarkets Chart of the Day

By Darren Wong
TradingMarkets.com
June 20, 2007   10:00 AM ET

These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. To learn more about our research into stocks that make five, or more, consecutive down days, and how to use this information, click here.

Rite Aid (RAD | charts | news | PowerRating) has been trading above its 200-day moving average since 3/24/2006, confirming its uptrend. Watch for price to potentially move back up over the next few days, as the stock corrects itself back into the direction of the long term trend.

Use pullbacks to get a better price on your buy-in.


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