Jack:
I am still interested in whether a buy signal based on your system
would be triggered by a move through C$2.50 on say 100,000 shares.
Well, I wouldn't really call it a system and I definitely wouldn't
call it foolproof as some have been characterizing it. There are
a couple of ways I'd look at PYT for a change in trend. The first
would be to wait for a breakout on its downtrendline. Many of you
claim that TA/charting doesn't work well on cases like PYT. I beg
to differ. Get a 2-year chart of PYT and adjust the price scale to
a logarithmic one.
Go here for a site that allows logarithmic pricing...
askresearch.com
Now, imagine a downtrendline drawn from last March to now. Look at
how nicely PYT trends. It is a breakout above this line that would
perk my interest. Whether that equates to $2.50 or not will change
depending on how long PYT adheres to this downtrend. For example,
imagine PYT to trade down to $1.50 for the next few months. Eventually,
a break-out will mean PYT breaking $2.00, etc.
Another way to watch for a significant trend change is to use a
moving average. On this same chart, plot a 50-day EMA and notice
that it acts like a downtrendline. The idea here is to be long
PYT only when it's trading above 50-day EMA that slopes upward.
This isn't my favourite way to look at trends because moving averages
do not take major support/resistance levels into account. For example,
using this 50-day EMA outlook one would have become bullish
on PYT in late November, 1998 precisely when it was running into
major resistance at $3.00.
As you can see, this is not hard science. But, I fervently disagree
with the notion on this thread that stocks like PYT cannot be
looked at effectively with a technical eye.
WN |
