RE: Beginners Questions
(2014-02-18, 11:12 AM)isatrader Wrote: I thought it would be helpful to members to do some quiz questions occasionally, and so as I have a bit of time I've attached is a mystery chart with a set of questions for you to answer.
- What is the Stage of this stock?
- Is price above a flat or rising 30 week MA?
- What is the volume doing?
- Is the relative performance versus the S&P 500 above or below the zero line?
- Is the relative performance zero line itself down, flattening or rising?
- Is there significant near term resistance?
- Would you buy this stock?
- I've also included the Sector chart and the S&P 500 at the time, so that you can evaluate their Stages also to complete the analysis.
- I believe that this a 2a stage. The stock has just broken out of the Stage 1.
- The price is above the MA and the MA is rising slightly.
- The volume has been increasing since December and is about double the volume moving average.
- The Relative Performance is above the zero line having just crossed it.
- The Relative Performance line is flattening.
- There is no significant near resistance; it has just cleared February 2012's high.
- Would I buy this? Yes, for all the reasons listed above.
Pam: "I wonder what my name means in Welsh"
Nessa: "Why?"
Nessa: "Why?"