Ainsworth Lumber Co Ltd ANSBF

RE: RE: RE: RE: RE: RE: buying at these levels

[louel]

I said when it was over $4 it should back off to $3.50 and perhaps as low a bit lower.     I think $3.40 would be just fine, but the 50day Ma. will be in the $3.40's when price gets there.  My intention is to play a bounce off the 50. Sell again if it reverses to the downside again. The 200 day moving average is down in the 20's  and institutions do not like price to stray to far from the 50 or the 200 as they are used as strength and weakness indicators as well as guides on entry and exits.  

   It is a consolidating period.  It would have happened if the OSB price remained high.     Happens in any uptrending stock.  Nothing ever goes up in a straight line. If it does it comes down again just as fast as it went up.

    I don't know what kind of chart and trading software you use.  If it is Worden. MetaStock, Trade Station or other higher quality subscription systems with Backtesting and movable and adjustable analytical tools I could probably show what and why I suspect what I do.    If you do Inbox me.