Tuesday, June 24, 2008

NNVC Support


38% Fibonacci retracement = 1.25
8 Week EMA = 1.21 and rising every day
50% Fibonacci retracement = 1.08 (ouch)
Fantasy/Reality Ultimate Valuation = 200.00

5 comments:

cantwate said...

I'm an amature at this and don't understand if these are good signs or not. Isn't this the formation of cup and handle? Sorry for my ignorance

Allan said...

catwate: the implication is that today's decline is not worrisome, is within normal parameters of a impulse wave up followed by a corrective wave down and in the long run, based upon some pretty lofty expectations for this stock, will hardly be a bump in the road to much higher levels.

a

shyamt said...

Allan,
Do you think NNVC is a buy here?
thanks,
Shyam

Allan said...

Shyam, that actually is a more complicated issue then it appears on its surface. There are considerations other then mere stock price, considerations that are personal to each investor relating to suitability and risk tolerance.

The simple, easy answer based on just the stock price and the chart above is Yes, NNVC us a Buy in this area.

The more difficult yet meaningful answer has to be crafted to each individual investor's financial and psychological characteristics, a task beyond the scope of this Blog.

A

shyamt said...

thanks Allan