KB, of the laggards you mentioned, ATPG has the most interesting set up to me.
On the way down, ATPG flashed it's second sell signal at $23.00. As ATPG has had a very nice 3 days, it is coming up against a point where if it can get above $23.00, it will now flash a buy signal.
What I find interesting is that my indicators are suggesting the price will pull back from here. I expect ATPG to close down on Monday. I don't know how far down, but if it closes below the 50 dma, it becomes a short candidate. If the expected move doesn't come on Monday, and the price finishes up on the day, it then becomes a buy candidate.
I like these inflection points where very clear signals are given, whether up or down, at the same time.
ATPG is set up for the perfect snap back down set up.
Note the chart to follow.
In the top window, the price is just under the 20 day moving average (yellow line.) The price closed just under the upper momentum band (green line.) This is the inflection point. The 20 dma is right at $23.00 and the price stalled out there.
The middle window shows a red line which represents short term relative strength. It is above 100. The green and light blue lines in the middle window represent short and long term stochastics. They are both below the 50 line. When short term RSI is above 100 and both stochastics are below 50, it usually means a pull back is coming.
The bottom window shows MACD and it is negative. The lower window shows a red line which represents intermediate term rate of change and the white line represents intermediate term volume. When MACD is negative, with both the ROC and volume indicator below the zero line, it usually means the price is going to pull back.
Every indicator says to expect the price to pull back and possibly set a lower low.
ttrader.com
Now, we know things don't always work out the way we want and those that use TA might try to anticipate lower prices. However, since ATPG is at the inflection point, I will look for lower prices on Monday, and short if the price drops below the 50 dma, however, if the price defies all of the odds and moves up above the 20 dma, on increasing volume, it's a strong buy signal. ATPG is set up to where the timing is almost perfect, one way or the other. One merely needs to keep an open mind and stay focused. Follow the money.
If ATPG decides to stall and do nothing, it's a matter of being patient and waiting. It will move, one way or the other in the near future, and the timing is right to follow that move in the short term.
dabum |
