Strictly Buy and Sell Set Ups Message Board

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Strategies & Market Trends : Strictly Buy and Sell Set Ups

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To: Ron who wrote (3079)	4/2/2005 2:42:20 AM
From: chowder	Read Replies (1) of 13449

Ron, I saw where the TC crowd was pushing NGPS. It's had a nice 3 day run. I don't like today's candlestick pattern though. The candle is showing the price gapped up, set a recent high and then the sellers hit it hard, driving it all the way below the opening price. Not a good sign for Monday. This is a good example of that overhead supply coming to market that I've talked about on many occasions. Those are the people praying that the price will come up to their entry point so they can get out even. This is why stocks coming off the bottom have such a hard time sustaining strong moves up. They are swimming against the current. Supply coming to market puts downside pressure on pricing. When you look at this chart, look at the horizontal bars to the left of the chart. The grey bar represents all of the people who bought this stock in that price range for the time frame shown in the chart. That's a lot of people waiting to be made whole. This price range has the greatest amount of overhead supply and its going to have to work its way out. If demand can pick up, you may see that supply dwindle much faster and then price can move up more quickly. It can move, I just don't know at what pace at this time. stockcharts.com[h,a]daclyiay[d20050101,20050401][pi!b200!f][vc60][iut!La12,26,9!Lc20]&pref=G dabum

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