TA is more complex than reading one or two indicators and then making a judment based on those factors alone. First of all, when a stock is oversold it can stay oversold quite awhile. When a particular issue has a great deal of momentum as nxtl does now, it is possible for it to continue to rise. On the other hand, depending on the amount of traders playing the stock, there may very well be a pullback, which will pull the price level to within the bollinger bands. Whether nxtl does or does not do this is questionable and is one of the reasons that when I am trading a stock, I watch the action in real time, tick by tick, which usually will confirm the price direction in a stock. Remember TA is an art form that measures investor sentiment. Because of the inherent subjectiveness of this endeavor, a great deal of time and effort must be spent studing the synergy between fundamentals, momentum, technicals, and market breadth to make the most accurate decisions.
Good Luck
Ken |
