Amfil Technologies Inc (FUNN)

[recinvestor]

The Accumulation/Distribution (A/D) line does not correlate with the number you see off to the side.

Logically speaking, yes...as accumulation rises, the float becomes tighter because accumulation suggests more buying and accumulating or holding vs. selling and distributing or giving away.

When A/D line turns upward, and the price has been in a downtrend, it suggests buyers view price levels as bottoms and they're buying in.

When A/D line turns downward, and the price has been in an uptrend, it suggests sellers view price levels as peaking and they begin to sell.

In the case of AMFE, the A/D line has been on a slow and steady rise over the last 6-7 months. The stock price has also been in a slow and steady rise over the same period of 6-7 months.

This is as bullish as it gets! Investors are buying and holding, AND the price is in an uptrend.

This suggests investors still see higher price levels to be had.

The A/D line is one of my favorite technicals to track. It suggests general direction and the direction is up.

Go AMFE
Rec