BigBull,
It appears the trend has finally changed (short term, for sure).
Look at the Buy/Hold/Sell Chart: quotes.barchart.com
This same chart signaled 100% SELL - Short, Intermediate and Long Term on Dec 23rd (FGH @ 6 5/16 all time low). Last week the short term indicator turned to HOLD and this week turned to BUY, as predicted. Yesterday, 3 more short term BUY signals were generated and 1 intermediate term BUY indicator (50 Parabolic Time/Price)was triggered.
This Chart continues to show Sell; but, will turn to hold, then to Buy as time elapses (again, because of the technical basis of its construction):
charts2.barchart.com I have included it because the wave form is NOT sporadic (short term zig-zags). IMO it clearly reflects a HISTORY of a MARKET BOTTOM and clearly indicates a change in DIRECTION. It also shows that FGH is still significantly OVERSOLD. LOOK at the current price in relation to '0' (zero) on the chart. By the time the Red Line gets back to '0' the stock price will likely have already doubled.
Using a longer view as a backdrop helps explain the cyclical phenomena: bigcharts.com
I think these changes in signals had immediate impact (yesterday) on both price and volume (perhaps illustrating some short covering along with the expected entry of some mo-mo players, and reentry of previous investors following the Wash Sales rules). As time elapses, the intermediate Sell signals will change to HOLD and then to BUY followed by the longer term indicators (which are based on longer term 50 - 100 DMAs and other intermediate and longer range technical parameters). Previous SUPPORT levels of 9, 10 and 12 have NOW reverted to RESISTANCE (because many investors (weak hands) will be thrilled just to get their money back) As these RESISTANCE levels are penetrated over the next few weeks and months, AVERAGE volume will most certainly continue to increase and price will likely trend upward in zig-zag fashion (accumulation/distribution by traders and investors). Since a body moves in the direction of least resistance (laws of physics), this trend will continue until the cycle once again tops out (reflected by profit taking by those who accumulated NEAR the bottom selling to those influenced by a Chart which will reflect almost 100% BUY SIGNALS @ JUST THE WRONG TIME). At some undeterminable future date (regardless of Company fundamentals) an OVERBOUGHT condition WILL occur because if the current strategy of growing the company is successful, EXPECTATIONS will reach a level of irrational exuberance and the cycle will again be complete. It is at these inflection points (TOPS & BOTTOMS) that an investor must evaluate positions for accumulation and distribution BEFORE the crowd.
SargeK |
