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Friday, 02/24/2012 1:20:30 PM

Friday, February 24, 2012 1:20:30 PM

Post# of 26138
BPAX annotated daily chart including supports and resistances.


Very important to understand how to read charts: previous supports become resistances, and, previous resistances become supports.


Supports and positive points are signaled with green, resistances and negative points are signaled with red.


Supports: On this stock, the support is very easy to point, like you can see, the stock is trading inside an ascending channel, so the support is the ascending green line, the one at the bottom, you can see why the stock stopped at .653, I just connected .38, the lowest point, with .44, the second lowest point, et voilá, we know why it stopped there.


Resistances: Also very easy, the ascending dashed green line is the first resistance, strong, and, the ascending green line, the one at the top, is the second resistance, it was created due to two overreactions.


Positive points:

- The +DI is touching the -DI, and, should bounce to the up side, while the -DI will fall.

- The volume in the green days is higher, it means the buy pressure is also higher, see the day when the stock bounced at .653, and compare with yesterday and today, two red days, with much lower volume.

- And what is more positive than a uptrend? As you can see, the trend is up, and, the top of the ascending channel, points to 1.25 - 1.50 in the short term.



Negative points: The RSI is under 50, the MOMO zone, and, the ADX line is under 20, it means that the trend is not strong.





Cheers
Dr Pennystock

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