|
PureBytes Links
Trading Reference Links
|
Would you believe it if I told you I had a stock that was growing at
120% per year for the last two years, yet only had a PE of 19?
Take a look at this chart and tell me what you think:
http://www.white-crane.com/stocks/coo.jpg
One strange feature in this chart is the centerline in the channel.
You'll see that I have drawn a pretty good two-year channel. The
bottom line is right on the 200-day Moving Average. To keep the top
line parallel, I had to ignore one spike up.
Within that channel, I've drawn another line that the stock seems to
want to stick to. Sometimes this line acts as support, and sometimes
as resistance.
Has anyone seen this sort of activity before? What does it mean?
It look to me a little bit like stock activity around the centerline
of a Raff channel.
Anyway, what it means to me is a 130% profit and a signal to buy more.
|
