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01/12/16 5:39 PM

#9684 RE: scstocks #9682

SC, The golden cross is a lagging indicator, and if the stock starts cycling sideways for a while you'll get a series of completely wrong signals. Nearly every stock will have a golden cross at the beginning of a sustained up move (as happened with WNR), but for every one of those there will be dozens where the golden cross provides the wrong signal.

On the ZBH chart, just watch for the 50 MA (blue line, currently at 102 and rising) to move up to and cross the 200 MA (red line, around 105 and falling), and that's the cross. But as I said, it's often a wrong signal, so it should be used in conjunction with other TA/chart tools as well as fundamental research into the company's prospects, the overall market's direction, etc -


http://stockcharts.com/h-sc/ui


Concerning WNR, it's interesting that the refiners have been one of the few strong areas in the energy sector, with the lower cost of crude being a big plus for them and Valero, although that won't last forever. As a bottom play, the rest of the sector will be very tempting once they finally stop falling. Still a falling knife though, which is the problem with bottom plays. I remember reading an article right after the THLD collapse, and the analyst seemed to make a convincing argument that the company was finished, which was echoed by Dew and some others on his I-Hub board. Sometimes these bios don't come back, so be careful.