Pascal et al.,
Can you explain how the Lower Boundary can be above the Neutral Boundary? I'm looking at BIIB and this is the present case: LB: $91.06, Neutral $87.04.
Thanks,
pgd
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Pascal et al.,
Can you explain how the Lower Boundary can be above the Neutral Boundary? I'm looking at BIIB and this is the present case: LB: $91.06, Neutral $87.04.
Thanks,
pgd
This occurs when a stock is in a strong uptrend. The neutral boundary is the place where the average earnings of active players is null. If LB is above NB, it means that buyers come in and push the price higher even before that equilibrium point is reached.
Pascal