Current Trade

Sunday, April 5, 2009

PDN.TO

PDN continues to defy gravity. If the opportunity unfolds where I can consider a position under $3.00, then I will be doing some thinking.

Various trend indications including using volume, 200 day average, and Level II analysis suggest that PDN has just about finished moving through a major resistance level.

Level II activity supports a visual look in real time that emulates day trading activity only, and the only reason the price is slow to make an up move is that we are knocking on the resistance door and traditional charting calls for a top that most people are reacting to as a response, but in this case the a top is a fleeting thing and selling is not heavy enough to push back the holding so a continuation is highly probable if it breaks through, and is going to make one of those moves where you say, "I never saw that coming". In a true up trend you will see many tops, new highs they call them, and if you can match them with higher lows, the only thing you can do is buy the dip.

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