Posted On: 12/11/2012 8:49:30 PM
Post# of 14350
Charts.
Both resistance and support of the up trend channel were blown away today on an intra day basis. KMAG is consolidating it's recent move from the bottom and backing and filling and fluctuating is to be expected but this is wild..
The second chart is quite telling. On the spike up to .005 the volume is significant but during the drop to .002 the volume was negligible. A second volume spike brought no price change. This action is telling us to pay attention. The rise turned back at a resistance level and the decline was halted at a support level.
Meanwhile, the close was right on the resistance line of the trend channel. This is a good sign that the recent up move is being digested. In an ideal chart the price would remain in the trend channel. As Martin Zweig said "the trend is your friend". And that is what is happening so far. However, the intra day spikes today are indicating that something us up. .
Both resistance and support of the up trend channel were blown away today on an intra day basis. KMAG is consolidating it's recent move from the bottom and backing and filling and fluctuating is to be expected but this is wild..
The second chart is quite telling. On the spike up to .005 the volume is significant but during the drop to .002 the volume was negligible. A second volume spike brought no price change. This action is telling us to pay attention. The rise turned back at a resistance level and the decline was halted at a support level.
Meanwhile, the close was right on the resistance line of the trend channel. This is a good sign that the recent up move is being digested. In an ideal chart the price would remain in the trend channel. As Martin Zweig said "the trend is your friend". And that is what is happening so far. However, the intra day spikes today are indicating that something us up. .
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