First, to learn the definitions and uses of tech analysis terms, please refer to www.stocksmart.com In my latest peek at some of the stats offered there, I looked at several items: the price graph, the price oscilator, and the Bollinger bands for basic analysis. According to the graph, a bottom of 12 7/8 was hit back in April(21?) and that was the basis for my prediction of 12. I figured the latest news was worse than any to date and we'd see prices at or below that low. If you look at the bloodbath from the other day, we actually bounced right off that low(+/- 1/8)!!! I still feel we may see prices (intraday or close) below that mark because again we are dealing with a major setback worse than anything in April. We were given a strong SELL indicator in late August with the price oscillator. It dipped below 0 then. While that is not always a good indicator for a stock, I have found that repeat signals with IPIC have GENERALLY held(not an exact science at all). What that means is that every other sell signal seems to have resulted in significant price declines(the opposite has been true too, every other buy as been followed by appreciation). The Bollinger Bands say that the stock likes to trade in the 15-20 range. Basically I believe this to be significant because it has traded in that range very consistantly. One can interpret this to mean that any prices below 15 are EXCELLENT buys(or you can be greedy like me and try to buy at a bottom). It also means we will keep bouncing off 20 and we all know the upper teens have shown significant resistance lately. Getting back to the graph, we have previous support around 16 that may present new resistance. I believe that will dictate a new trading range in the short term. Since the Bollinger Bands suggest a range of 5, I feel that 11 1/2 to 16 1/2 might be a new trading range for awhile. Of course new events always sway things. I would not say we will be in a reversal of fate(upward) until we get 2 buy signals from the price oscialtor(we must turn positive there, maybe twice). I hope this helps! Now, if we take this read, the value investors read, and continued analysis of the news and events, we should ALL make out ok here! Let's work as a team and make the bundles we made last year all over again!!!!
Doughboy |
