Sharp Corporation's stock has been in bad shape since 3/17/07 when its relative strength indicators revisited its comfortable negative territory, indicating that the stock is resuming its weak status. Institutional investors noticed this mid February '08 when they started selling their positions.
While today there is some institutional ownership in Sharp, it is not enough to merit buying into the stock. Further, the stock has been trending above and below both the 50-day and 200-day moving averages, so it cannot even figure out what it wants to do.
Most recently, in June '08, the stock dropped on higher-than-usual volume below both moving averages and has stayed there since. While on a positive note, the stock did what looks like a double bottom around $15.69 and has trended up back towards the 50-day moving average, the last candlestick was the kind of formation that indicates a top has been put in, and so I don't believe it will go up much further than this.
One interesting note -- it is interesting that the last time the stock rallied, it put in the same kind of double bottom (late October '07 and mid-November '07) before rallying up, so perhaps there is a rule that when this stock forms a double bottom, it rallies a bit from there.
All this being said, I'd say STAY AWAY from this stock because it is not one to own.
ABOUT THIS BLOG
Welcome. The contents of this blog comprise my personal observations on the stock market from the perspective of using both fundamental and technical analysis by reviewing market data and stock charts based on the methodologies of William O'Neil of Investors Business Daily and his books, from Stan Weinstein's books, and most of all, through lessons learned over the years by listening to Gary Kaltbaum's "Investor's Edge" radio show on Business Talk Radio.
Criteria of stocks include first researching sectors to determine which are strong and which are weak using the ADX indicator (>40 = increased volatility); focusing in on a leading sector and buying leading stocks on a high volume breakout (minimum 2x average) above a base; stock prices are higher than $25/share with daily average volume higher than 300K; positive and increasing PVT (indicating institutional ownership), positive and increasing RSI (indicating relative strength compared to other stocks in the market).
Please keep in mind that I am by no means an expert, nor are my posts intended for anything other than to share my opinions of what stocks are doing for the purpose of getting feedback. Thus, please do your own research before taking action on what you read here. I will be adding posts on topics of interest as I learn about them.
Criteria of stocks include first researching sectors to determine which are strong and which are weak using the ADX indicator (>40 = increased volatility); focusing in on a leading sector and buying leading stocks on a high volume breakout (minimum 2x average) above a base; stock prices are higher than $25/share with daily average volume higher than 300K; positive and increasing PVT (indicating institutional ownership), positive and increasing RSI (indicating relative strength compared to other stocks in the market).
Please keep in mind that I am by no means an expert, nor are my posts intended for anything other than to share my opinions of what stocks are doing for the purpose of getting feedback. Thus, please do your own research before taking action on what you read here. I will be adding posts on topics of interest as I learn about them.
Thursday, June 26, 2008
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