Another interesting graph

In the series ‘trading ideas’ we’re interested to see what happens next..

In a bit of an experiment, we’re collecting stocks with interesting graphs to see whether these graphs actually have some predictive value. Here is one with a multiple bottom, which, theoretically, has more chance of bouncing of than falling through that line in the sand.

Click to enlarge

  • You’ll see that $22 has been a pretty good floor four times in recent months
  • On the other hand, the trend is not rising, and the 50 day moving average has provided resistance two or three times as well

We’ll leave the fundamental research out this time