Net 1 (UEPS) Showing Bullish Volume

Posted by barkand on December 19, 2011 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.