Palm Inc (PALM)

[aoccoa82]

I wouldn't buy PALM right now if I were you and I will tell you why, I was thinking of investing on it too but these are my reservations:

1. You have no support level of any kind till 3.87 which is the lower bollinger band, basically below this you have nothing to fall on.

2. MACD both histogram and fast line are downticking and not crossing.

3. Your closest resistence level is the 5 day moving average which is all the way to 5.2 and you just had a gap down on Friday (almost a dollar), it will be a draggy investment for weeks to just fill it.

4. Your ADX (or trend) is on a very strong sell signal with a the red line at 49 and the black line at 40. Meaning if you want to be a bull you have the trend against you 100% of the way.

5. Your money flow is not only at 0 but -0.5 and all the way to the bottom.

I think you should wait, looks like it is heading for penny land. If it gets bought? Sure. but it hasn't. Why dont you short it?