OTCPK:NEWH - Post by User
Post by
pro_traderon Sep 01, 2008 1:08am
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Post# 15423280
An extremely favorable Risk/Reward scenario
An extremely favorable Risk/Reward scenarioBSRC is currently trading at $.34 and off of its 52 week high of $1.58. Since June of this year, the stock has made a pattern of marginal new lows. However, experienced technicians would be quick to point out that while the price has made lower-lows, the MACD has made a series of higher-lows. This is known as a "bullish divergence" and bodes extremely well for the stocck. There is underlying accumulation which will ultimately result in a sharp tradeable rally in the near-term. As the stock enters an oversold condition (as measured by the stochastics), the downside volume has been all but exhausted. Shares should be accumulated now for the inevitable pop traders will see in the next several days. This pop should take the stock bacck up near its 200 day moving average of $0.56.