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Registered User
Joined: 1/22/2006
Posts: 7
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Looks like a negative divergence in TSV for a potential top for CLB.
Options traders setting up for a nice PUT trade.
Opinions are welcome..........PLEASE.
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Registered User
Joined: 11/11/2006
Posts: 359
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The eye of the beholder......
For a short term outlook, you may well be correct.
However, CLB is in a good uptrend here. On a 126 Linear Regression channel (126-30-19) it is only at the midpoint of the channel.
Taking a gander at the old standby, ADX/DMI, one will notice that the ADX started its upward move on the 4th of March and yesterday crossed the falling -DMI. This is very often a good sign, when the rising ADX, which shows trend strength, crosses the falling -DMI.
The shorter outlook for this equity, using Larry Williams synthetic VIX, it is short term overbought, for sure.
This indicator is below its lower Bollinger Band channel. a 20-5-5 Stochastic is also oversold.
I view divergences as something of interest but take them with a grain of salt. MACD is also diverging, but these are of less importance, in my view, with a longer outlook on a stock with good uptrend.
There is as much a chance for this holding to be starting a good upmove as there is for a short term pullback. Should it drop lower than its recent support, around the $126.00 area I would have more concern.
This would violate both the recent support from the two highs of early Jan and late Feb as well as the trendline break starting from the lows of 2/5.
All depends on your holding time.......
The shape of one mans opinion.
Mammon
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Registered User
Joined: 1/22/2006
Posts: 7
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Greatly appreciated.................great analysis
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Registered User
Joined: 12/2/2004
Posts: 1,775
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Nice looking long term chart for CLB since late 08. What jumps out at me are some possible resistance areas, one very close by and other two about 10 to 15 percent away. I see a trendline drawn from top of early Nov 08 to top of early June 09, to top of Oct 09, to top of early Jan this year. so current price very close to that trend line. Other possible resistances at 08 highs and 07 highs. I always look at BOP and MS; MS performing well during alongside recent 6 week upward move in price, but can't help but notice that BOP did not move in tandem. But OBV performed quite well. Overall the chart too ambiguous for me to say yea or nay. FWIW, and good luck.
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