NECA Daily Chart ~ A Total Reversal After a Failur
Post# of 2559
Posted On: 11/02/2013 8:01:09 PM
NECA Daily Chart ~ A Total Reversal After a Failure to Hold the MA200
The top this week on NECA was almost too easy to call. Once the entire candle gapped out of the upper bollie to run as high at .0093, the stock collapsed after failing to hold the MA200. Congrats to all that flipped the stock for some very nice gains after entries when Flex called it in the .001s. Those that chased the stock got killed for now. The lesson to be learned is to not chase a stock that has already doubled, tripled or more unless there is some extremely strong material event that can support that kind of a move. Now the indicators and stock will have to reset. The MA16 and 20 are sitting just below Friday's close. There are some calling for news this week, but it's unknown to me what that news might be. Some immediate consolidation at .003 would go a long way in rebuilding a higher base after the strong bounce which began two weeks ago from .0011. Not much else to say as this was just a 'tag along' play for most of us, and I know very little about this company. It was a great chart play, though.
The top this week on NECA was almost too easy to call. Once the entire candle gapped out of the upper bollie to run as high at .0093, the stock collapsed after failing to hold the MA200. Congrats to all that flipped the stock for some very nice gains after entries when Flex called it in the .001s. Those that chased the stock got killed for now. The lesson to be learned is to not chase a stock that has already doubled, tripled or more unless there is some extremely strong material event that can support that kind of a move. Now the indicators and stock will have to reset. The MA16 and 20 are sitting just below Friday's close. There are some calling for news this week, but it's unknown to me what that news might be. Some immediate consolidation at .003 would go a long way in rebuilding a higher base after the strong bounce which began two weeks ago from .0011. Not much else to say as this was just a 'tag along' play for most of us, and I know very little about this company. It was a great chart play, though.
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