Ok, just for the record, this is what I said on Aug. 2nd when we first talked about WDGFF. It is sure not sounding like being negative. Now, You have further convinced me that you have a lousy memory<g>
And also, the first time I talked about this stock was when it was at 2.5-3, I said, on bad days, it may go back to 1.6, and it did, for several hours in Aug.
>>How can you tell someone is accumulating?<<
One thing is the candle stick is white, that means there are more buyers than sellers. Another thing is to look at the On Balance Volume. You see for WDGFF, the OBV has been pretty much flat,but the stock price down quite a bit, so that is some kind of positive divergency, usually means someone is accumulating.
Another thing is to look at CCI for future price trend. Look at the CCI back around June 20, and draw a line to July 23 or so, you can see very clear down trend. At the same time, the stock price has been going up. This is called Negative divergence, usually means someone has been selling into the strength (small bad holders buying in<g>). And then the stock down from 2.99 to as low as 2.5 (16%). In some big cap stocks, this indicator does not work well. But in micro cap like WDGFF or MMG, it still helps.
Example of Positive divergence in CCI: draw a line on CCI from early March (when the stock price was at $1.6 or so), to March 12 or so, you see a clear up trend, while at the same time, the stock price was flat till down (got a double bottom, that is a buy signal too). That means someone were buying into the weakness. Then after March 12, you see the stock shot up a lot. One benefit of CCI is that it can tell you what will happen, instead of what has happened. Although the divergence in CCI does not happen very often, or happens more often in some very manipulated stock, such as WGDFF<g>. It does not take much capital to manipulate micro caps. |
