Open Table (OPEN) Might Have Some Legs

Posted by barkand on December 19, 2011 under Bollinger bands, RSI | Be the First to Comment

Until recently, Open Table (OPEN) has been terribly bearish, dropping from 118 in April to a recent low of 31. In 9 months, it lost three-quarters of its value. It fell quite hard, finding temporary support at its 20-week average and then tumbling along the ever-decreasing lower Bollinger band.

Last friday, OPEN closed at $40.15. Could the bulls finally be taking control of this one? You will notice that during the first half of the decline the prices were scraping along that Bollinger band. Later, whenever prices would hit the band they would quickly reverse. And finally at the apparent bottom we see that prices never even touched the lower band. It all adds up to a weakening of selling pressure.

Is it time to jump in? More aggressive types might want to start buying here, but we want to see two things before we can recommend it as a long-term trade:

1. Prices should reclaim the 20-week average and stay there for more than a couple of days
2. The 4-week RSI should get to at least 80

Net 1 (UEPS) Showing Bullish Volume

Posted by barkand on under Volume | Be the First to Comment

Sometimes the clues to a stock’s future direction are subtle and hidden.

Other times, the answer punches you in the nose.

On this chart of Net 1 (UEPS) there is obviously a V-shaped pattern in the recent prices. The V, by itself, does not tell us much. But when you look at the volume on the upward side of the V compared to the downward side, it is clear that the buyers are much more confident and motivated than were the sellers.

UEPS may have reached a minor top at this point. Last Friday’s action may have been a mini buying climax. But we would use any consolidation as a buying opportunity.