>At what point would the chart turn positive again? Or is there not a specific price where that would occur?
Dan,
IMHO, the specific point in question is 11 bucks a share...assuming a traditional Pnf chart. At 11, that "X" would rise [breakout]above the previous highest "X" at 10.5, and therefore, at 11, GUMM would technically be on a "Pnf buy signal". However, even at that, there would still be considerable overhead supply to be concerned about.
That's my understanding about the Pnf chart, and if I'm wrong I'd appreciate someone correcting me.
BTW, Pnf isn't a particularly easy concept to grasp, but IMO it's well worth the effort because, theoretically at least, Pnf reflects pure supply and demand without the time factor clouding the issue. FWIW.
Have a good day.
Ice |
