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Charts courtesy of stockcharts.com

Wednesday, August 24, 2011

NVEC


NVEC is a very good example of why I started the price relative project last week. Ordinarily it is one I would not have been paying much attention to (although it is on the earnings list, so i should have been), but if i had been scanning for six month highs in price relative early this month, I would have seen the breakout it had about 3 weeks ago, while price was floundering below the 200dma. That breakout telegraphed a big move up, which I didn;t see until today when it hit a new high, and by now, it's probably too late.

2 comments:

Michael said...

I noticed that they went into over sold territory using Williams %R for both NVEC and ITC after making a new high price relative.

David said...

Hi Michael,

i just took a look, and you are right. I will have to find out what that is measuring. A couple of years ago I did a series of posts on technical indicators, and since I didn't know what most of them measured, it forced me to learn about them. It might be a good idea to do that again. Stockcharts has a really good set of articles on how each indicator is constructed and how to interpret it.

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