When buying, it is safer to buy when a strong stock pulls-back to a zone where the supply of shares is lower than 10%.
Pascal
When buying, it is safer to buy when a strong stock pulls-back to a zone where the supply of shares is lower than 10%.
Pascal
Pascal,
Just curious, how is the UB and supply of shares calculated for a stock at/near all time highs (e.g., TSLA?) an just about every holder has a potential gain?
Thanks,
Harry
UB (Upper Boundary) is calculated as the price at which the stock will reach the top if its current trend.Originally Posted by Harry
Because TSLA's number of existing shares turns in about 35 days, the LB/UB pattern will change fast.
The UB tries to determine the price at which we could reach the red dotted line shown below.
The LB tries to determine the price at which we could reach the green dotted line shown below.
If we break LB, then we should consider a possible trend change. however, the current all time high does not say that a new higher high will not come. UB/LB are independent calculations from the price of the latest close, even if the latest close what at an all time high. UB/LB catch the behavior of shareholders that expresses itself in a trend - or in the value band - of a stock.
For the Supply calculation, we are at a low supply for TSLA, because of the quick rotation of the stock and the fact that the price did not change much in the past days. This simply means that the majority of shareholders are new shareholders and that they will not sell now: they either have a small gain or a small loss. They will be patient.
Pascal
Thank you Pascal.
Posting Permissions
Reply With Quote