Raymond, if you have any comments on GATE from a TA perspective, would appreciate input...
Okay, here's where I see GATE standing:
*Strong support at 1.46
*Definitely in a trading range
*Slow Stochastics not really giving much indication. They are neither oversold or overbought. They have been oscillating in a small range.
*Fast Stochastics indicating bearish sentiment due largely in part I'm sure to this market's effect on all stocks.
I usually don't deal with stocks this low since the extra risk involved but if you can find a nice tiddler to take you up, you've got it made.
The RSI has support around 42. It's pointing downwards at the moment and might retest that value. Buying on a bounce for a quick buck could be possible.
MACD not really reliable here. The fast line is above the slow but it's by such a small margin I wouldnt trade off it.
What is interesting is the convergence of the 17, 50, and 200 DMAs. This indicates a break is likely to come and strong in the direction.
I use a system adopted from a TASC article involving multiple moving averages. It's very reliable. It had a "buy" back in late August at 5/8, a sell signal at 1 7/8 in September, and another "buy" back in Early march at 1.29.
Right now it isn't signaling one way or the other but a strong move upwards (back to say 1 15/16) would produce a rare buy signal.
I believe it is in a trading range between 1 15/16 and 1 1/2. At first I thought I saw a descending triangle starting from the 2.50 high in April and connecting the recent highs of 1.98 in June. I don't think it is valid though because the stock has achieved 1.93 on two occasions indicating the Bulls are maintaining strength. Of course, the bears were able to bring the stock back down to 1.50 so they haven't lost anything either.
ADX was rising nicely but seems to be topping (again because of the market). If I was going to trade this one, I would wait for some more definite buy signals. Of course, waiting for them is asking a 30-50% rise in the stock because of the low share price.
Right now I wouldnt buy. Not till the Dow reaches 8300 or so and the Nasdaq 1700. This market is too trashy and most breakouts are failing.
As for HDIE, if it can hold 3.75 and/or the 50 DMA, it will be a very clear and distinct ascending triangle. This will be final proof of how much the bears have weakened and a warrant of a retest of past highs (4.25). The only other chart of stocks priced under 12 I like is AILP.
The stronger stocks fell today but they fell on lighter volume. OTOH, the Asian stocks will probably fall hard because of the US and then the US will fall hard because of Asia, etc. etc. Like a Merry Go Round until someone has the sense to stop pushing the "replay" button.
Still looking forward to this week though....:-)
Conservatively Yours,
Raymond J. Norris |
