3.07.2006

DIVERGENCES


Our friends at INVESTOPEDIA say the following about divergences "divergence is considered either positive or negative, both of which are signals of major shifts in the direction of the price. Positive divergence occurs when the price of a security makes a new low while the indicator starts to climb upward. Negative divergence happens when the price of the security makes a new high, but the indicator fails to do the same and instead closes lower than the previous high." The image above is a better illustration of a classic NEGATIVE DIVERGENCE.

I think that is where we stand on the SPY and the IWM although probably not the drop that RGLD incurred.

1 Comments:

Anonymous PENNY STOCK INVESTMENTS said...

Nice spread

1:28 PM  

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