OTCQX:PALAF - Post by User
Post by
PUNJABIon Jan 11, 2013 2:59pm
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Post# 20827458
Most U stocks overbought
Most U stocks overbought RSI of most U stocks is in overbought area. PDN was also overbought when it bounced from an oversold situation where the stock created multi- year lows.
Now PDN is no longer overbought. But the stock seems to be under performing other U stocks like CCO, UUU & DML which are tackling their 200 ma & trading above it while PDN is still to far below its 200 ma. There is a huge gap between the 50 % 200 ma. This means that if this is reversal in U sector then other stock will generate a bullish signal well ahead of PDN.
There is another way of looking at the situation of PDN. This stock will eventually catch up or other stock will come down to its levels therefore this stock is relatively safer for trade & an argument of rotation can be made in the favour of PDN.
Hot money rotates in & out of stocks. Money moves out of the stock which get ahead & then get in the stock that are lagging.
Canadian traders have a disadvantage while trading this stock. The volume & direction is set by Australia. Canadian have to deal with the hand dealt by Australians. The main issue is that we are not in the same time zone & there is zero overlapping & is poor intra-day trading stock.