By Jeff Pierce
Technically this is a very strong chart and I like everything about the indicators, but it has 2 very big no-no’s.
1. Volume is under 500 avg daily.
2. Today’s move was due to an analyst upgrade.
You might think that is a good thing, but when it comes to analysts I just don’t trust them. They want to provide liquidity and raise the stock price so they can unload their shares. Maybe I’m being a little cynical, but I’ve rarely seen any upgrade provide any lasting power for stock appreciation and stay away from them like the plague. If I’m in a stock and it gets a pop due to an upgrade I’m out.
So this is a case where I’m not really saying that this stock is going to be higher 2 months from where it is now, as it is more a lesson on what a strong chart looks like, and why I’m not touching it.