For those interested in charts, I just noticed that the one I put up on 10/7 (Post #: 9507218) is connected to a URL, so it remains live and is up-dated several times a day - amazing.
If you check it out now you will see today's action.
The sp is now is technically in 'bull' mode. As I mentioned before the MACD crossing the '0' line sends a signal to the market that this stock is now in an up trend and should be a 'safe/low-risk' buy and held until the 'bend in the end'.
The histogram (the blue vertical bars) along the '0' line, indicates the degree of divergence/convergence between the signal and MACD lines i.e. growing positive divergence suggests stronger over-all support for upward price movement.
The RSI indicator suggests that the sp still has considerable topside and is not over-bought. The stochastic is showing that momentum is quite firm supporting further up-price movement - stochastics are able to sustain these elevated levels (above 80) for some considerable time.
So, at this stage the sp is now in a bull uptrend and is flashing a buy sign to the market, which should normally attract greater numbers to the buy side.
Also, we should expect some healthy periodic pull-backs (retracements) for profit taking and consolidation coinciding with over-all market moves - a strong sign of further advances. Normally, the further the sp advances without these rest-stops the more likely of a deeper severer pull-back.
Without being too optimistic, I would be quite comfortable with a close at ~26-26.5c to end the week.
We still have a fair distance to go before spud, so we don't want to see exhaustion setting in with the indicators reaching a premature peak before we receive some market ann. Especially, it would be a negative to see the MACD rolling over into a slow weak downtrend, warning the market to sell-off.
NEN Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
