NeoMedia Technologies, Inc (NEOM)

[chartist1]

NEOM WEEKLY CHART (VERSION #2):

Attached is the more zoomed in weekly chart that I have been posting for the past week or two. The MACD cross (very bottom right) is a significant occurance but we STILL don't have volume.

Breakouts should be confirmed by volume so from the charts perspective the advance is suspect to this point. Now, OF COURSE, if NEOM teams with Google (just an example not rumor) tomorrow morning, price would launch up on huge volume but I don't deal in what if's.

The correct play if you added to positions on this breakout would be to wait for a) big volume to come in and a launch higher in price, or b) a drift below the breakout line with increasing volume...in which case you would say "something is wrong with my assumption" and you would sell the shares you just added for a small loss. Again: The top pros all make bad trades...but they distinguish themselves by recognizing them right away and cutting losses to the absolute minimum. I am NOT suggesting (in this scenario) selling all your NEOM shares.....just the ones you added after the breakout. You DON"T want to carry more shares on the way down if ANYTHING does not smell right. That is basic.

I just point this out as basic trading discipline....I am not suggesting anything is wrong.

For those of you who think I am spelling this out waaaaaaaay to much, I have learned my lesson that it is neccessary to ensure the clarity of my entire post gets carried across.

Chartist1


http://stockcharts.com/def/servlet/SC.web?c=neom,uu[h,a]waclyyay[pb50!b200][vc60][iut!ub14!la12,26,9...