We've been receiving a lot of questions about technical analysis lately and so I wanted to point out a great resource for people who wanted some quick technical analysis for free. Some people just look at a chart and have no idea what all the lines mean or what they're supposed to be looking for. And, I must say, I was the same way when I first started to include charts as a tool in my investment arsenal. And, I'm writing this because there's a good solution for those of you who are just learning about it but want to know what the technicals are saying about a particular stock right now. A great place to start is to learn about trends and how they play out over time.
INO has a free technical analysis tool where you can just enter the ticker symbol and your email address and receive an analysis of the stockin your inbox. And, you can do this for things other than stocks by entering "crude oil" or "gold", etc. So, definitely check that out if you want a quick glance at how some equities are shaping up technically in the current market.
Below is just one of the samples of what they will send you for your quick free chart analysis. They'll show you the short-term trend, the longer term trend, as well as provide commentary on the current technical setup. They've also devised a numerical score based on a weighted formula from their Smart Scan chart analysis. Here's an older free technical analysis email covering Wells Fargo (WFC) at the beginning of February 2009:
(click to enlarge)You'll notice that their technicals implied that the rally in WFC shares in January was only a short-term trend in the context of a larger downward trend. And, as such, shares of WFC dropped from $18 to $12 in February. This free technical analysis tool definitely helps you see the near and long term trends in a stock. So, just wanted to share this free resource for those who are curious about a stock's technicals in this current market.
Also, if you want to learn more about technical analysis and chartology, check out some of the books in our recommended reading list.
