A buying prospect or suspect?
Here's a chart of KKD:
stockcharts.com[h,a]daclyymy[pb50!b200!b25!b9!f][vc60][iut!Ub14!Ua12,26,9!Lh14,3]
I bought KKD when it split and it ran up 15% for me in two days. I sold it and then bought it back when it dropped three bucks a share. It continued down and I lost 5% the second time trading it. I netted a 10% gain. The stock has been trending down since then.
As you look at the Relative Strength Indicator, and the Stochastic Indicator, you will notice they are approaching oversold status. I'm hoping to see both of these indicators continue well down into oversold range. The chart indicates it has a good chance of doing just that. KKD sold off on decent volume today.
When those indicators cross down into oversold range, level off, and start moving up again, that will be the time to take a position.
Of course we will want to monitor the condition of the market at that time, but for now KKD goes into the stock to watch category for a possible buy.
A good short candidate?
stockcharts.com[h,a]daclyymy[pb50!b200!b25!b9!f][vc60][iut!Ub14!Ua12,26,9!Lh14,3]
Notice how the indicators are coming down from overbought range and FLO closed under it's 9 day moving average? This is usually bearish.
I am not recommending shorting FLO, I don't know anything about them. I'm showing you an example of where I like to see the indicators when going short.
This is a sample of my system from the long and short sides.
Buy/cover from oversold range, sell/short from overbought.
dabum |
