Repost: ACRT Technical Analysis.
To: Teri Stephenson (2454 )
From: stan s.
Saturday, Mar 7 1998 12:37PM
Reply # of 2649
ACRT, from a TA standpoint. I'll refrain from commenting on the various charges and counter charges emanating from this thread's participants.
This analysis is for lurkers and others interested in ACRT from a technical view.
Keep in mind that ACRT's moves will be significantly affected by any truths (pro or con) promulgated here, that may come to fruition.
Please look at the chart, the link follows.
geocities.com
Friday appears to have been a significant day for ACRT. As you can see it broke the down trend line (white) that has gripped it since late January.
A slew of short term positive signals ensued.
In order for this break to hold ACRT simply needs to remain above support for a short time. Support is pegged at about 11 1/8. This line of support has it's origins back on April 28. Doing so will break this somewhat sloppy descending triangle.
Note the 2 top windows in the chart. A total of 4 momentum indicators are depicted there. All triggered buy signals on Friday as they pulled out of oversold.
Please note a similar circumstance in mid February. 3 of the 4 indicators signaled a buy, resulting in an anemic 3 day pop, before the decline resumed, having been slowed, not abated.
From a technical standpoint, some differences exist. In mid February the Chaikin Accumulation/Distribution indicator was at an historic low and recovered only slightly. It has been in recovery ever since and is back to levels of early Feb. when the price was around 18. This indicator generally leads prices, higher or lower. In this instance it is clearly trying to lead the price higher..a bullish divergence.
In mid Feb's pop the MACD was still in a flat to downward trend...it is now in a flat to slightly upward bias...this is more of a midterm indicator than those shown in the upper 2 windows.
The Money Flow Index reached it's lowest point recently on Feb 19th at about 10. It has since surged to 40. The price has continued to fall another 5 points or so...the opposite direction of the MFI.
This is an extreme divergence. The MFI will have to tank or the price will have to surge to catch up. Again it does not always happen but here again the MFI will generally LEAD the price...this is a bullish divergence.
If the indicator was significantly lower than the price it would be a bearish divergence.
There's no reason to continue with this. If you believe this to be a healthy company, the TA suggests it is primed for a positive move. If you believe it's a fraud, where the shorts continue to hold sway....obviously you should not buy. If one were shorting this company without evidence of the most egregious duplicity, one should be panic stricken.
Good luck,
Stan |
