Ask Vendit Off Topic Questions

[Vendit]

Q: If you wait for a stock to close over resistance and it does, if it pulls back to below that point in the morning is that a good buy in or a sign to stay away?

Looking at the chart you can plainly see the stochastic over-sold. A good time to accumulate the stock if the stock has a reliable chart indicator history. I believe that it does.

I glance at the chart and see two confirming black candles in a row which lead me to believe a short term reversal down is in the works, especially since it did not maintain a close above upper resistance of $35.

Now it's time to figure an ideal entry assuming the above is true and correct. Next lower support is $32 1/2 so in a perfect world that would be a good entry target IMO.

http://www.askresearch.com/cgi-bin/chart?symbol=IMPH&exchange=USA&size=640x480&months=3+...