Most software stocks are *very* overstretched relative to the 150day and 200day emas - some are 60-70% above those levels!
Historically, such extensions ended with big pullbacks.
Not a prediction; simply an observation.
Historically, such extensions ended with big pullbacks.
Not a prediction; simply an observation.
2) These over-extensions can resolve in two ways -
(i) Big pullbacks towards the moving averages
(ii) Price consolidations as the moving averages catch up
In any event, a pause/pullback will be healthy IMHO
(i) Big pullbacks towards the moving averages
(ii) Price consolidations as the moving averages catch up
In any event, a pause/pullback will be healthy IMHO
3) Here is the most extreme example -
Note how over-extended it is relative to the red line and observe how prior over-extensions resolved (by a trip to the red line)
On watch for a pause or pullback.
Note how over-extended it is relative to the red line and observe how prior over-extensions resolved (by a trip to the red line)
On watch for a pause or pullback.
