Feraldo: Watch the volume. You want it increasing or near even as the price goes UP.
Watch the RSI Indicater, if the RSI is HIGH,you have to ask yourself [ Does current NEWS or whatever is causing the rise in price, support a HIGH RSI?
Some news , or whatever is moving the stock, is SO BIG a high RSI is ok.
If whatever is moving the stock is NO BIG DEAL, the price will not support anything but a low to mid. RSI.
What are the insides doing? If selling small chunks, it not a big deal. If several are selling a high % of their holding, WATCH OUT BELOW!!
Buying is a much better indicater of direction then selling. Sometimes they just need a bigger house. When they put money IN, that means something!
Look at the history of the chart. Learn how it acts with each news story. Moves large amounts? Hardly moves?
Get a feel for the price swings that the stock has over time.
Check the DMI indicater. Is it bullish or bearish? If it is undecided, you will have to watch how it moves though out the day. The direction might become apparent during the Interday.
Ask yourself, whould I sell or hold on at this point, if I owned it.
If you allready own the stock, do the opposite. Would I BUY at this price if I did not allready own it?
Put the shoe on the other foot, and see how the stock looks.
That is just a small part, and just one of many stlyes of picking winners and lossers.
MMCN looks like it could go 30, but not by next week. Looks like it needs more like 2 weeks.
There could be some spots along the way were the stock makes big jumps in price. Then there are a few days in a row where it goes sideways or down a bit. Watch that RSI !!
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