Red Flags that NGPS Provided

…For this particular stock, I used the point and figure charts to show me that it was reaching overbought levels. The stock was 100% above it’s 50-day moving average and almost 300% above the 200-day moving average.
This is pure overbought levels.

Another huge indicator was the P/E ratio that tripled while plotting on a chart. Once a stock’s P/E ratio doubles, this is the first sign of overbought levels. This is only a secondary indicator to price and volume.

The stock logged a couple distribution days and a few days of ‘higher’ highs on lower volume – all red flags that you make you aware of the stock topping.

Finally, the stock was moving from $25 to $50 in one month – this is too much, too fast, it must digest its gains at some point.

I encourage questions on this blog pertaining to Daily Screens and Weekly Screens that I can answer and provide more detailed analysis in new blogs. Become active in posting comments, I have opened the comments to anyone on the web as of today. Members of course will always be first priority.

Piranha