e.Digital Corporation (fka EDIG)

[Sentinel]

The Bollinger Bands begin to constrict again, and EDIG approaches "oversold" territory in Wm %R (-.80):

http://stockcharts.com/def/servlet/SC.web?c=EDIG,uu[w,a]daclyiay[dc][pd20,2!b200][vc60][iUk14!Lc20]&...

In the last 6 months, when the price has has dipped under .80, it has not stayed there very long, 2 weeks at most.

For more information on this indicator, see below:
http://stockcharts.com/education/IndicatorAnalysis/indic_williamsR.html

From the above linked explanation:
It is important to remember that overbought does not necessarily imply time to sell and oversold does not necessarily imply time to buy. A security can be in a downtrend, become oversold and remain oversold as the price continues to trend lower. Once a security becomes overbought or oversold, traders should wait for a signal that a price reversal has occurred. One method might be to wait for Williams %R to cross above or below -50 for confirmation. Price reversal confirmation can also be accomplished by using other indicators or aspects of technical analysis in conjunction with Williams %R.

One method of using Williams %R might be to identify the underlying trend and then look for trading opportunities in the direction of the trend. In an uptrend, traders may look to oversold readings to establish long positions. In a downtrend, traders may look to overbought readings to establish short positions.

EDIG is currently in an uptrend, according to multiple indicators, including the 200MA.

As a testament for recent price behaviour, it is interesting to note how the price has reached this oversold level far fewer times in the last 6 months than the 6 months before that, and how different the Chaiken Money Flow graphs are for those same periods:

http://stockcharts.com/def/servlet/SC.web?c=EDIG,uu[w,a]daclyiay[dd][pd20,2!b200][vc60][iUk14!Lc20]&...

There will be fluctuations, but IMO, the company and its share price are showing increasing strength, stability, and potential. Those who don't believe TA applies to BB stocks may consider this post for amusement purposes only.