David,
Do you use TA? As I mentioned on the TRP thread I was into EBC.A
at 17.90 on the basis of an upturn in the three month MACD. Turned
out to be a good move. Sold at 21.50 on TA as well. Expected
the stock to drop back. Instead, it has moved in a very narrow
range and, yet, every technical indicator predicts downward
movement. Like you,I would buy EBC.A under 19. Even then, though,
I'd want to watch it pretty carefully. The long term chart shows
a series of lower highs and lower lows. If that pattern were to
be followed, the next low should be about 17.50. At the moment
the price is sitting just below the long term downtrend line.
When that has happened in the past, there has been a slow decline
(a broken rounded top?), then as people release the price has hit
resistance, started to sell with an accelerated fall to a new
support line four or five dollars below the new peak.
The pattern could, of course, be changed because EBC.A starts to
see positive results from its restructuring. The one thing that
looked very positive, was that it held its own when the market
turned down the other day. When a stock moves up against a general
downtrend that often presages a run up in price.
Anyway, if you or one of the other threadsters are into TA could
someone tell me if I'm missing something or misinterpreting what
I'm seeing.I'm struggling with TA. Trying to get the basics. |
