The Daily Chart for Silverado Feb. 2
posted on
Feb 03, 2010 10:32AM
Silverado Chart link
http://img521.imageshack.us/img521/5970/silveradodailychart.png
As you can see the share price has remained at the 20 day moving average (green) line as support the past few weeks and if you look at the 50 day moving average (blue) line, it has been creeping down closer and closer to the 20 day moving average line, threatening to crisscross moving down under the 20 day moving average line which would turn both of those two moving average indicators into a positive bullish pattern.
IMHO, this could explain why the short sellers are in a state of panic they don't want to see those two moving average lines invert to a bullish pattern on the chart. IMHO, they would like nothing more than to be able to drive the price down below the 20 day moving average (green) line to buy themselves more breathing room to make their money short selling Silverado stock.
Remember, I've mentioned in the past that...
The solid black line on the chart is the accumulation/distribution line which reflects that are more shares bought verses share sold. Remember, this indicator does not take into its equation traders short selling or naked shorting a stock only physical buying verses selling.
I do realize we all have our own investment stratgies. Personally, I have always taken advantage of these price pull backs to buy more stock to add to my 5 year postion. It's because Garry has Tom Bundtzen and Peter Hooper in his corner that I plan to buy more shares today.
Ka-Ching Ka-Ching $$