Wednesday, December 07, 2005

UTAC - To hold or sell, that is a Question!


There are many evidences in the chart that show that the Bull is getting out of steam. The sloped down CMF and the MACD-historgram stops rising and ticks down, these are pre-cursors that show that bears are in control and moving to cash is now the best opinion!
Accumulation/Distribution indicator drops, it means distribution (selling) of the stock, as most of sales takes place during the downward price movement! OBV also confirmed with its tickled down clue!
Worth to note is also the progressive decreases in Volume against Price risngs preceding to today's fall. This usually signifies a Climax top! The Candlestick chart did not look good either. It is getting heavier and heavier with the filled/black candle pattern. Another black candlestick would definitely confirm the start of a (dangerously fear) distribution stage! If this should happen, taking chips off the table is entirely up to YOU!

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