EVG.V
The above copy and paste is a real time clip from Level II TD Waterhouse... the bollinger was narrowed...
The price got a bit carried away and went outside the bollinger,,, corrected, and is now demonstrating continued strength... this a supplement to the view in the StockCharts Public Chart List which is not as enlightening. The black line is a 20 day average, and as such the closing above the average remains bullish in nature as the lack of supply diminishes in a trading swath of resistance... this resistance is not made up of a large overhang, but rather a swath of traders who are taking their pennies worth, this swath will get thinner, but the upper layer of this swath will also rise as the traders buy and sell; when the action is slow... it will lose the interest of traders playing, and thin out the ask as they move on. (Hopefully)
If things bubble as they have, the price should flush out the traders who end up having to chase, the swath will thin... the bulls will get brave... and we should see some better action, albeit back fills as the price moves up on higher lows, in a good world.
SQI.V
SQI.V has much the same motion, but is much earlier in the bottoming pattern, and is just working it's way through the pattern just above the 20 day average still under some light pressure.
As an entry point I feel the risk is very much at the lowest point per this time in both entries, such that they both have less to fall in the event of a broad market correction... and the overhang is negligent with both issues... leaving a potential break out to have the best safest, maybe not violent pop appreciation in relation to others that have already move large distances.
This type of positioning is not chasing and confuses many noobs that do chase.
Each to thier own.
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