hi Susan G, i find your name familiar.
where have i seen you before? what thread?
i look at candlestick charts, in all time frames (1 to 60 min., daily, weekly, monthly), and concentrate and try to listen to what the stock is trying to tell me.
valuation is important of course, because if it's very stretched, and the chart is showing uncertainty or weakness, slight as it might be, you know which way the uncertainty is going to be resolved: down.
support, resistance, broken trendlines, well-defined candlesticks patterns (like the always reliable and very bearish evening star), the RSI indicator, and a few others, are all key.
in this specific case, the chart i posted the other day was very long-term so the candlesticks were not visible, but if you zoom in on whatever chart you have, you'll see a slight slant to the downside (lower successive tops).
or better yet, take a look here:
spytrdr.com
spytrdr.com
you'll see clearly on the weekly chart that the rise was too parabolic too last.
i can safely say that you'll see this stock at $ 29 before it ever sees $ 70 again.
disclaimer: this is not investment advice, due your own DD, etc etc |
