Charting from my point of view

The wealth of information on the internet is massive. Passing along that information and my own point of view is important. The hope others can take some of this information and take it on further is my goal. Some of this information is a good start with making calculated decisions with higher odds of success rather than random investing. This is not about bragging by no means, I have been humbled before but we learn from mistakes. Passing information along with the hope that others can learn from it and avoid those mistakes.

Below is a chart and how I see things with entry points, reasons why to approach investments and using charting as another tool to increase the odds of success. As tricky as the market can be it doesn`t always work, but decreasing the odds of mistakes can make a difference. This will be the first of two chart posts that may be helpful. Finding an investment and sector was my first objective. I want a sound company or sector that is healthy fundamentally but beaten down such as how oil has been. Knowing historically that oil never stays down after huge corrections this sector is a good choice to look at. Low oil prices eventually cause more demand, producers reduce production and companies are bought up or go bankrupt. The result is less oil on the market. The next approach is to chart the healthy companies. On this chart you can see that XOM ( symbol ) corrected bigtime from 100 down to 85. Oil itself dropped 60 % however XOM is an individual company with a healthy long producing dividend. I think around 3 %. In a time of low interest on investments it is a solid choice. If the stock price rises then the added benifit is capital gains. Increasing the wealth of your nest egg. I`m looking for the lowest odds of failure. The almost no brainer and staying within a set of rules not to be broken. At the top you will see two moving average lines. The black and the red. You will notice how the black line crosses over the red line and how the price reacts to it. I could get more technical but it`s about recognizing patterns. You can see how the price was oversold by using the moving average lines. There is where you may want to make an entry point. When those moving average lines get on a hill is where the price may be vulnerable to either leveling off or declining till investors come back. It is my experience the really big money keys off charting, so use it.