Forum Archive Index - February 2002

[Phaedrus <Phaedrus@techemail.com>]

Nick et al,
            You state <<< your chart shows a buy at the highest price
of the last few weeks >>> 
 The chart does NOT show a buy at this point. To signal a buy, the CLOSE would 
have to be clearly above the resistance level of 85 cents. Intraday peaks above 
this level do not constitute a buy signal.

<<< a review of the fundamentals a week ago would of resulted in a much better 
priced entry. >>> 
 A review of the technicals before that would have got you an entry cheaper yet 
again, by some 20 cents.

<<< i bought at the exact spot you have as a sell area. >>>
 That does not make the Sell signal wrong. This was signalling a clear 
weakening of the uptrend at that point, and flagged the exit of a very 
profitable trade. 

 Nick, I wish you well with this trade. I was merely pointing out (1) Why I 
would not trade this stock, and (2) Why I would not have bought at the point 
you did.  

 Buying just below a confirmed resistance level is generally considered to be 
needlessly risky. It is much safer to pay a few cents more, and buy when (or 
if) the resistance is breached.

      Phaedrus.

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