After analyzing picks such as USXP, RSHN, CNES, and ADOT I tried to find similarities. They were all trading flat and dormant for a good amount of time. This allowed the MA lines to drop down low and get nice and tight. The same goes for the bollinger bands. MACD was trading near zero as well as momentum. They were all near one year lows.
The way I see it, we're fighting a battle with resistance and support. As those plays laid dormant, the resistance levels dropped tight to each other to make it easy for the stocks to run past them easily, and thus turning them all into support. Since the MACD and momentum were near zero it was also easy for those indicators to turn nice and positive as well.
Lastly, since they traded sideways for long periods of time, usually casually downtrending, there were not many previous highs to act as resistance as well. Fewer possibilities of resistance with more possibilities of support. Sounds good to me. Anyways, hopefully here is a chart of NWAU at the bottom.
Currently I'd like to see more volume out of it and for that volume to turn the RSI and %R. I don't mind if this takes a while, because I'd like the 100 and 200 day MA's to fall closer to the 20 and 50.
I'm recommending people to place this one on their watch list. When this thing tightens it could be ready to explode to the upside.
They're old numbers, but it's all I found so far. Outstanding Shares: 16,000,000 as of 2005-01-05
Estimated Market Cap: Not Available Authorized Shares: 100,000,000 as of 2005-02-15 Float: 12,000,000 as of 2005-02-15
I'm not suggesting people get in just now. Like I said I want to see some more down movement and leveling off. The rubber band needs to be stretched. What is everyones opinion on this?
I think it's easier to see how tight this thing is getting on bigcharts.com. Matt
Posted by permanentjaun on :
I guess the pic didn't work. Oh well. I'm sure most of you are capable enough to chart a stock with bollinger bands, MA, MACD, momentum, RSI, %R, etc..
Still would like opinions. Strictly a TA play IMO. Thanks. Matt
Posted by CrashtehLine on :
ADX is good where it is, means low strenth of the current trend. she's ready to go IMO.
Posted by permanentjaun on :
Thanks for posting the chart.
Not sure why stockcharts.com uses a varying price y axis. If you look at a 1 year or 6 month chart on bigcharts.com you'll see it's trading much flatter than the above chart makes it appear.
I encourage you all to compare the techincal indicators of RSHN, USXP, ADOT, CNES, etc.. I'm not trying to pump and say this stock could possibly be as profitable, just saying the technicals are similar.
The only problem with this company is their product. Their product isn't anything special and won't be getting any national contracts anytime soon as many of the other stocks I mentioned did. As I said, strictly a TA play IMO. Matt
Posted by BuyTex on :
I like bigcharts, too...
however, on stockcharts? break out "volume" to separate overlay and "black" vs "red" becomes quite apparent
Posted by permanentjaun on :
Got an opinion on the pick BuyTex?
Posted by BuyTex on :
haven't looked it at it...but I will
Posted by BuyTex on :
Just looking at volume and charts, I'd say wait...
BUT, again looking at volume, I'd say you are onto something...but for me, no technical signal.
news? a whole 'nuther question...did not check that or any FA
Posted by permanentjaun on :
You may not find much. The company isn't anything huge and it's been a year since numbers were released, oh and it's a pink.
I'm looking at this as strictly a TA play. Let it fall in price some more and have the technical indicators get tight. Then wait for the volume to start coming in. "Volume precedes price" Once that happens it could be off for a decent ride. Matt
Posted by BuyTex on :
roger, that
Posted by permanentjaun on :
She bangs, she bangs.
Looks like this was a news play and not TA, which is how I found it. But hey, just means that when the TA shows the possibility, news will make her move. Hope everyone is enjoying the weekend. I woke up this morning wondering why nothing was trading. I forgot it was saturday. Oiy. Matt
Posted by mototrader79 on :
I got into this one friday little before the bell. I bought at a little big of a high point, but there was news on this, and they say they are posting a PR on May 10th-earnings report. They havent been making any money and were in debt, they report they are making money now. IMO, a good PR on wednesday will cause this thing to start a run, probably short but im sure good for a one or two day % gain-in and out. Just another point of view.
Posted by gnulnx on :
"Not sure why stockcharts.com uses a varying price y axis."
It is a log scale. Makes it easier to visualaize percentages. You can turn it off. It is also worth noting that log charting on bigcharts sucks for penny stocks.