|
DANGEROUS BREAKOUTS HOW TO SPOT BREAKOUT FAILURES EVEN BEFORE THEY FAIL N - (Not-so-sweet) NETSUITE (C) 2010 www.tigersoft.com |
| N made a new high on red (high volume ) to
18 in early January. The Accumulation Index had been reasonably positive and the OBV confirmed the new high. But the stock a month later fell to 12.How might we have seen the falseness of this breakout? 1) Prices did not reach the upper band before reversing. 2) The Closing Power did not make a new confirming high. It had been confirming rallies by the stock on earlier new highs. 3) The CLosing Power then broke its uptrend. This is a reliable SELL when the Opening Power (public buying) has been rising. See second chart. 4) A bearish head and shooulders pattern setup with the 65-dma as the neckline support. The support then failed. This over-rides any short term red optimized Buy. It is a clear sell. When year-long uptrend-support-line is violated. This is so bearish to sell. 5) TigerSoft's Day-Trader Tool widely failed to confirm the high. 6) TigerSoft's Asynchronicity Index widely failed to confirm the high. ![]() |
![]() |
![]() |
![]() |