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Message Boards Settings Waste Services Inc. (WSIID) - Quote Info
Re: Mean Reversion      2-Nov-09 12:07 am    
I thought about buying it on Oct. 27. I noticed it had a Bullish Flag chart pattern, and I knew it was going to break out. Because I was working 4 other stocks, I decided to let it go.

I am just passing through comparing and analysing chart patterns, candlesticks, and gaps.

Are you familiar with gaps? One occurred Oct 28 when the stock broke out. You can see it clearly on a one month daily candlestick chart. It left an open gap with a 64 cent difference. The market does not like voids on its charts and has a tendency to return to fill those gaps. It can forgive a 1 or 2 cent difference, but it will not forgive a 64 cent difference. It will return to $5.43 to close that gap, and I figure maybe lower to $5.37 to meet up with the 20 sma.

When price has moved away from the average, it becomes vulnerable to profit taking by swing traders so be on the alert. At the moment, WSII has 2 strikes against it. What is needed now is the candlestick confirmation.

Whatever, you decide to do, good luck.
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dj28rdpd


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  Subject Author Rating Time of Post (ET)  
 
When price has moved too far from the average, the stoc...
dj28rdpd Rate it 1-Nov-09 01:01 am  
 
Or...it just might continue to move upwards, for a...
badzooky Rate it 1-Nov-09 01:52 pm  
 
Hopefully, it will be a period of sideways mo...
dj28rdpd Rate it 1-Nov-09 04:03 pm  
 
Thanks...I really lucked out when I found this one...
badzooky Rate it 1-Nov-09 05:52 pm  
 
Re: Mean Reversion
dj28rdpd Not rated 2-Nov-09 12:07 am  
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Waste Services Inc. (WSII)

Chart for Waste Services Inc. (WSII)
On Dec 24: 9.13 Down 0.03 (0.33%)
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