InvestorsHub Logo
Followers 10
Posts 1338
Boards Moderated 1
Alias Born 01/30/2008

Re: catnapper post# 4661

Thursday, 05/01/2008 12:42:12 PM

Thursday, May 01, 2008 12:42:12 PM

Post# of 21815
Just something to keep in mind. reading the chart.

Stochastics
The Stochastic Oscillator is registering a bullish signal as the %K line is above the %D; however the oscillator has moved above the critical value of 80 and is now overbought. The overbought condition means that the upwards momentum experienced in this stock is not sustainable.

RSI
According to the RSI which is currently at 89.68% and above the critical level of 70, CSTC is overbought. While a stock that is overbought may continue to rally, investors should be especially careful when CSTC begins to lose strength and RSI dips below 70.

Bollinger Bands
CSTC's recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility. Additionally, CSTC is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.