Nihao Mineral Resources (NI) is a good example of up trending stock whose value will increase as long as it doesn't hit by outside forces . Such forces would be bad publicity that made investors loss interest on the stock causing a sudden selling and volume decrease producing a large Red candlestick. As shown in the graph below Nihao is a definite buy.
 |
NI_8Feb2012
|
If you enabled the Simple Moving Average Lines from the buttons on top : 32(Blk) , 65(pink) , and 130 (blue) and they cross below the current price moving up you will see that the momentum started from Nov. 2011 although it only became more obvious from Jan 13, 2012 because of the steep slope.
Meanwhile , Boulevard Holdings (BHI) is an example of a Range or Sideways non- trending stock. As shown in the graph the price is below the 130 day (blue) Simple Moving Average (SMA). Such stock price doesn't go up for the near term but stays on very limited range for several weeks to several months tying up your capital. So its best to sell it and instead only buy trending stocks for long term investments .Unless you see that the 12 day SMA crosses above the 32 day SMA which indicates a bullish trend I suggest to keep away from such stocks.
 |
| BHI_8Feb2012_Sideways |
No comments :
Post a Comment
Pls . Sign-up above if you find this Blog helpful. Thank you !