ESRX is at resistance, and price (as it beats recent highs) is negatively diverging with rsi, slow stochastics, and macd and macd histogram. bulls got volume in their corner. one to keep an eye on.
Showing posts with label esrx. Show all posts
Showing posts with label esrx. Show all posts
21 March 2007
ESRX and divergences
intaday post
ESRX is at resistance, and price (as it beats recent highs) is negatively diverging with rsi, slow stochastics, and macd and macd histogram. bulls got volume in their corner. one to keep an eye on.
ESRX is at resistance, and price (as it beats recent highs) is negatively diverging with rsi, slow stochastics, and macd and macd histogram. bulls got volume in their corner. one to keep an eye on.
09 March 2007
ESRX, trend lines and the mechanics of price and volume
price and volume can be very telling. keep in mind that any one day may or may not be meaningless in the grander scheme of things. its an ongoing, iterative, analytic process.
the significance of price and volume mechanics become more important as price approaches demonstrably significant trend lines, horizontal support/resistance lines and moving averages. for example consider the chart of ESRX below. the red circles highlight yesterday's candle and corresponding volume. note the high volume along with the failure of the price to break above the downtrend line or make any appreciable and significant movement, either up or down. yes, the stock closed down for the day, but the absolute change isn't great. this indicates large turnover of stock accompanied characterized by nearly balancing amounts of selling and buying. another word for this is distribution. sustained distribution over time or at key resistance levels is very bearish and helps to build the case for shorting. no back to ESRX - why such action here? there was news recently, but i don't follow that too hard. for better or worse, i prefer to listen to the charts - but that's just me. in all honesty, i am slacking in my ability to appreciate the fundamentals. at any rate, failure to break above or below the long term downtrend line will be significant - keep it on your radars!
the significance of price and volume mechanics become more important as price approaches demonstrably significant trend lines, horizontal support/resistance lines and moving averages. for example consider the chart of ESRX below. the red circles highlight yesterday's candle and corresponding volume. note the high volume along with the failure of the price to break above the downtrend line or make any appreciable and significant movement, either up or down. yes, the stock closed down for the day, but the absolute change isn't great. this indicates large turnover of stock accompanied characterized by nearly balancing amounts of selling and buying. another word for this is distribution. sustained distribution over time or at key resistance levels is very bearish and helps to build the case for shorting. no back to ESRX - why such action here? there was news recently, but i don't follow that too hard. for better or worse, i prefer to listen to the charts - but that's just me. in all honesty, i am slacking in my ability to appreciate the fundamentals. at any rate, failure to break above or below the long term downtrend line will be significant - keep it on your radars!
22 February 2007
intraday post (click charts for larger image)
CNX = TBD = too be defeated by MA200?
ESRX popped up above the down trendline so now it tests the next resistance...
LRCX is sub MA200 and riding the trendline down, so far...
GROW - too obvious? Getting shares to short was impossible before...
ESRX popped up above the down trendline so now it tests the next resistance...
LRCX is sub MA200 and riding the trendline down, so far...
GROW - too obvious? Getting shares to short was impossible before...
16 February 2007
Subscribe to:
Posts (Atom)
