Long time readers know one of my mantras is to keep on doing it until it ceases to work. Once I see a pattern emerge, I will continually go after it.
Let’s take a look at the MOS chart to illustrate this point. Over the past 6 months, buying the stock when the stochastic indicator became oversold and hit a price pivot point, then selling once it reached overbought levels has netted some lofty gains. We’re talking 10,20 or 30 point gain each time this has happened.
We have reached that point again. The stock is at oversold levels and price is nearing support levels.