Re: BMD ..... Some of you have shown an interest in BMD. Now that the week is over, we can take a look at the weekly chart and see what clues it is providing for a longer term outlook.
The first thing I notice is the uptrend. BMD has had a nice run.
The second thing I notice is a divergence between price action and money flows. While price has been rising, money flows have been declining. What this means to me is that should price pull back and break support, you can probably count on a decent correction as the declining money flows are showing a decline in demand. If demand can't pick up in this price range, it probably won't pick up until we see price fall to a price support level.
The last two weeks have shown a Doji and a Hanging Man pattern. These two candlesticks, following a strong uptrend, often indicate a reversal is coming. Last week's candlestick pattern, and the week before, show topping tails.
This is a dangerous spot to be picking up new positions. The reversal may not come but, if one is looking to go long, a better entry from a low risk viewpoint is to wait for a correction or wait for a price breakout.
The market will tell you which way this one wants to go.
stockcharts.com[h,a]waclyiay[d20050125,20051225][pb20][vc60][ilc20][J65406513,Y]&listNum=1
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