Melvin Pasternak

Analyst Articles

One of the most explosive formations in technical analysis is called the “flag.” The pattern consists of a nearly straight-up price advance followed by a consolidation, which usually takes the form of a pennant or small rectangle. Technical analysis holds that a stock typically leaves a consolidation formation… Read More

The roughly 70% drop in oil prices in less than two years has claimed many victims. The economies of entire countries such as Nigeria and Venezuela have been devastated. Shale oil boom towns like Fargo, N.D., have gone bust.  Shares of many energy companies have been decimated — some even… Read More

Most investors are aware that the tech-heavy Nasdaq has a tendency to lead the market both up and... Read More

Most investors are aware that the tech-heavy Nasdaq has a tendency to lead the market both up and down, and the current sell-off is no exception. The Nasdaq Composite is off more than 15% from its... Read More

Last week, blue-chip Caterpillar (NYSE: CAT) reported dismal fourth-quarter and full-year results. 2015 was a tough year for the construction and industrial equipment giant, and the stock reflected this, falling 25%.  Following the earnings announcement, the company’s CEO warned that 2016 would be another “rough” year. But the… Read More

A chart pattern we are always excited to spot is the ascending triangle. Consisting of a horizontal resistance line at its top and an uptrend line at the bottom, the ascending triangle has a bullish bias. It is seen by technical analysts as a “continuation” pattern, which is a pause… Read More

Last month, the world mourned terrorist attacks in Paris that left 130 dead. In the wake of the... Read More

Last month, the world mourned terrorist attacks in Paris that left 130 dead. In the wake of the attacks, the State Department issued a global travel alert for U.S. citizens — an action that was... Read More

The holidays are upon us, which is exciting news for retailers and traders alike. As sleigh bells ring, so will cash registers. The holiday shopping season officially kicks off on Nov. 27. Black Friday sales are expected to top $80 billion as 300 million shoppers swoop up deals. Read More