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Registered User
Joined: 10/24/2007
Posts: 19
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GRIZLD CAN I GET YOUR THOUGHTS ON THIS ONE?
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Registered User
Joined: 7/28/2007
Posts: 118
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Winthy,
Like I mentioned before I'm not much of a bottom fisher. I have only done this a couple of times and limit it as much as possible because these are high risk plays IMO. With that said I did get in on SEED, but the circumstances are a little different. Volume is huge, and I have made some decent money on these chinese stocks so I was a little more prone to taking the higher risk on. In contrast SAFM has had two big breakdowns recently and volume is thin in comparison. Also it seems that price rose on lower volume yesterday, usually a sign of weakness. I also do not like the fact that SAFM is trading below all of the moving averages I like, 8ema, 20,50, and 200sma. They are no where close on this chart.
With all of that said I hope you do well with it!
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Registered User
Joined: 12/21/2004
Posts: 902
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Winthy - I don't think it's going anywhere soon. I think it's still going to go back to it's Oct 22 lows.
While the rest of the market has made a nice recovery from the August declines, this guy has just kept on going down - not good. It's very quickly becoming oversold, without having really gotten anywhere - and as Griz pointed out, it has volume problems - it's big volume has only been on down days - and that isn't what gets an uptrend started. Look at the MACD-H also, hitting new lows as the price was hitting new lows - this indicates strength in the downtrend - what you want to see is new price lows accompanied by a higher MACD-H. See where the MACD-H is when the price low matches the Oct 22 low again - that'll give you a clue as to whether the selling has stopped or not.
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Registered User
Joined: 2/5/2006
Posts: 1,148
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looks like a good short candidate. just pausing with a bear flag, before the next leg down.
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