ASX.V – Alberta Star

by JDH on November 25, 2006

Recommendation: Buy half position now, balance on confirmation of upside break-out.

Stock has been in a downtrend since it’s April high (see red line). Long term trend since February is up. Short term trend since October is also up.

A stock can’t be going both up and down at the same time, so somethings got to give. Since the MACD has fallen to reasonable levels, my guess is that the trend will resolve to the upside.

The safe play is to start buying above $2.20, but it’s probably okay to buy half of your position now, and then buy as it continues rising. If I’m wrong and it resolves downward, at lease you only invested half of your position.


{ 0 comments… add one now }