Tuesday, August 28, 2007
NSTK Needs to Stay Above 200 sma
I wrote about NSTK a week or so ago. The stock has since come down to where I said to buy it. It has sold off after a sharp break over its 200 sma to come back down and rest on it. The good news is that it has bounced off. The bad news is that the market is weak bringing just about everything down with it. Could NSTK stay above its 200 sma and be a great buy here? Yes, i think it can. Could it turn out that I am wrong? Absolutely. But the proximity of the 200 sma to the current stock price gives a clear, close level that will tell us we're wrong, thus making the trade low risk. As far as upside, the chart looks well positioned. The stock broke up strongly once in July then consolidated that gain. It then broke up once again over the 200 sma. This current move downward seems like it is just another dose of consolidation, not a break down. I would expect another solid move higher with a gain of at least 10 percent. That is why I want you in this stock and in it now.
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