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Alias Born 01/02/2005

Re: PowerPole post# 1512

Friday, 02/11/2005 11:27:57 AM

Friday, February 11, 2005 11:27:57 AM

Post# of 7018
From my limited TA knowledge:

The Chaikin Money Flow's been positive since the end of January, while we've been declining, so it's just drifting down on the low volume, no great sell off.

The Accumulation/Distribution had been rising throughout November and December and has been even and steady ever since (perhaps a very slight upward trend). While the latest chart isn't bullish, it's not bearish either, but it does show a slightly bullish divergence with the falling stock price since the start of 2005.

The RSI is now in OVERSOLD territory. If that continues then any pop to the upside will be strong.
The MACD and Full Stochastics are also both in oversold territory.

However, the MACD is falling almost in parallel with the MA and doesn't show any indication of crossing it any time soon.
It's the same thing with the Full Stochastics indicator.
When these two indicators start to flatten out and prepare to cross over their moving average lines then the next big move up will be ready to begin.
There is no way to predict that too far into the future, but by watching these indicators we should be able to know when the selling is done and we're ready to break up again.

The first indicators (money flow & accumulation) are like having an arrow loaded on a bow and showing the bow string being pulled back. Those last two indicators can't tell you when the arrow will actually be fired, but they can tell you when it looks like the bow string has been pulled back as far as it can. Then it's just a matter of time. Of course, that would also be the perfect time to buy more.

All, of course, IMHO.

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