Let's take a look at the MOS chart to illustrate this point. Over the past 6 months, buying the stock when the stochastic indicator became oversold and hit a price pivot point, then selling once it reached overbought levels has netted some lofty gains. We're talking 10,20 or 30 point gain each time this has happened.
We have reached that point again. The stock is at oversold levels and price is nearing support levels.
2 comments:
Hi,
If you are looking to get in, what price would that be? And your initial stop?
I read your posts with great interest - keep up the great work!
Thanks,
sunil
I know you were bearish on Gold recently but correct me if I'm wrong, if you apply the same criteria of oversold stochastics to an overall strong trending stock or sector, wouldn't Gold be a buy now? For example, look at the chart of GOLD (stochs are extremely oversold and look to be attempting a turn). Thank you in advance.
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