Technical Talk
The monthly chart below is on a company listed on the TSX, OILEXCO. ( OIL.TO ). Today we will examine the long term chart to see the big picture.
I remember less than a year ago everyone and their grandmother wanted to own this darling. When it traded at $19 people were calling for $30+. When the price fell to $12, analysts were screaming strong buy and one of the greatest long term holds. Now we look at this darling from a technical point. In the month of august 2008, the long term chart began showing us that the party was over. From the MACD to the stochastic all the way to the RSI, everything broke down. We eventually all learn this lesson, when Mr. Market turns bearish… get out of the way and fast. Another key break point was the famous 200day moving avg. This was breached in October 2008 and some would even argue September of 2008, all bearish signals. Lesson here… don’t fall in love with a stock no matter what anyone says.
Where does Oilexco go from here? It’s not quite that clear to be honest… it could have a pop but at this point it’s nothing but a gamble as the Royal Bank of Scotland can no longer finance the deal. http://www.financialpost.com/story.html?id=1130454
You could also hit Las Vegas and bet on red if you want.
Cheers, Happy trading.
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Gewinn ist die Summe aus positiven Investitionen abzüglich negativer Investitionen |
