Equis - Bollinger Bands Review of Molopo Australia NL (MPO) as of 5/10/2007
On 5/10/2007, Molopo Australia NL closed below the lower band by 23.5%. Although prices have broken the lower band and a downside breakout is possible, the most likely scenario is for the current trading range that Molopo Australia NL is in to continue.
Making the picture somewhat unclear is the fact that Bollinger Bands are 50.49% narrower than normal. The narrow width of the bands suggests low volatility as compared to Molopo Australia NL's normal range. Therefore, the probability of volatility increasing with a sharp price move has increased for the near-term. The bands have been in this narrow range for 5 period(s). The probability of a significant price move increases the longer the bands remain in this narrow range.
The recent price action around the bands compared to the action of the Relative Strength Index (RSI) does not suggest any trading opportunities at this time.
This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. Equis accepts no liability whatsoever for any loss arising from any use of this expert or its contents.
is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. Equis accepts no liability whatsoever for any loss arising from any use of this expert or its contents.
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A member of HC mentioned this break in the bollingers last week. I'm sorry I cant recall who it was.. heres the Metastock read out mentioning no trading opportunities due to low volatility and RSI readings. It seems that given todays doji procrastination they were correct. I personally dont like the bollingers interpretation as in historic terms the bollinger narrowing and crossing would show considerable volatility on any other stock Note thats also three black candles.. so I am more bearish than the software readout
any thoughts/criticisms john
Posting this as folk are talking of going long what are they basing that on ?? TA reasoning only..please
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
