Here's a chart buy I did yesterday (a "real" buy hehe ). I learned this technique a few months ago from a pretty good trader who holds some stocks a good while. I thought about his tactic & liked it as it made sense. The stock is ADBE. Their new product piqued my interest. Also, I just recently bought Acrobat Pro 8 for my own business use.
Look at their weekly chart on Daily Graphs, if you subscribe to that fine service, where you can see about two years history. ADBE just broke to "blue skies" over the two year time period [NB, not just a 52 week high - those are overmined], which means there are few, if any, remorseful sellers awaiting at higher levels. And in my judgement, it's not very extended, since it just broke out of a seven month base. In fact, the weekly chart looks like a bullish cup & handle. Putting that all together, it's a "buy" to hold awhile & give it time to develop. Maybe the real buyers [whose presence is indicated by the consolidation pattern on the daily chart] figure that new product will start new growth in earnings.
That is what this stock needs. It's earnings growth vs. its current PE is not good. But the chart seems positive. So I bought some & will add higher or lower and give it time to develop.
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