In NTES footsteps? <g>
YTD, NENG has consistently been one of the strongest stocks in one of the strongest sectors (storage) in technology.
From Businessweek (Dcipher):
CORPORATE SNAPSHOT
NETWORK ENGINES INC
Other Dcipher reports:
The current wave of accumulation has outlasted all overhead resistance from sellers and driven NENG to a new fifty-two week high at 3.660. This preponderance of buying makes the stock one to watch for continued upside momentum. Further demand from investors could bring more new highs. The last trade for NENG was 3.660 on volume of 764,700 shares traded. In the short term, NENG may consolidate briefly before resuming its current uptrend.
A Moving Average describes a stock's price trend with respect to a specific time frame. To calculate a 10-day moving average, the closing prices for the most recent ten days are added together and then divided by ten. This renders the Average price of the stock for the most recent ten sessions. By calculating this average daily using only the most recent data, the average "moves" in conjunction with the underlying stock price. The moving average provides a reliable reference for tracking both trends and performance.
NENG shows a substantial positive divergence from its 200-day moving average line of more than 75%. Generally, the greater the difference between a stock's price and this important long-term technical indicator, the steeper will be that stock's long-term uptrend. A divergence this large from the 200-day line ranks in the top five percent of the market and is a bullish indication of long-term strength for NENG.
A positive divergence of more than 25% from the 50-Day Moving Average Line confirms that NENG has recently been under accumulation. Monitor the stock's performance relative to this significant intermediate term indicator. Some investors would consider NENG somewhat over-extended in its current price range because the stock is trading so far above its 50-day line. If NENG soon falls to profit taking or broader market momentum, as it converges with the 50-day line look for support in that range or a turn upward as indication of strength in its overall trend.
NENG has exhibited short-term momentum as implied by its positive divergence from the 10-Day Moving Average Line. Be advised that a pullback or consolidation on profit taking could soon be in order following any additional gains the stock might post in the near-term. If NENG is also above its 50 or 200-day moving average line, this is technical indication of a long-term uptrend for the stock.
Monitoring a stock's price in relation to its moving average lines is an effective means of understanding the dynamics of its price trend. When considered with other technical indicators, moving average lines offer powerful insight into price movements. If NENG is below its 50 or 200-day moving average line, the stock has recently been down trending and the break above the 10-day line could be first indication of a possible recovery.
A "Price Gap" represents a range of prices on a stock chart in which no trading takes place. This occurs when a stock opens for trading at a lower price than the previous day's close and then does not trade above that mark again. Negative opening gaps are bearish indication of weakness in investor demand. If this move lower is accompanied by surging volume, or is through a point of previous support, it could be early indication of a new downtrend.
NENG shows a negative opening gap of greater than 5% with its most recent open. Examine news or events to uncover what may have prompted this heightened selling pressure. If no news corresponds with this decline, keep a watchful eye as more weakness could follow.
The above report is based on mathematical calculations and, as such, no investment decision should be based solely on its conclusions. Follow this link for the full disclaimer
Please forward all questions and comments concerning this report to: Dcipher@telescan.com
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