Posted on December 22, 2009 - by La Papillion

A friend and his guru friends

Photo by Sir Mervs dose

I heard this story from a friend of a friend. He was walking along Raffles city, on the way to run some errand when his broker texted him, saying that NOL is a good buy because of some news or some reports. Whether it’s actual news or just rumors is not important, it’s sufficient to know that there are some catalyst to trigger the price and he promptly told his broker to buy 10 lots of it.

After he crossed a road, he met his friend, who is known to be a guru at technical analysis (TA). This TA guru told him that NOL broke out of range, and the macd lines are going to cross over. Yesterday’s candlestick shows a bullish engulfing pattern, with the volume being at least 20% higher than the average volume for the past few weeks. This, the guru told him, is a good sign to buy more. Our hero in this story, let’s call him Joe, called up his broker again to buy up another 10 lots on hearing this very positive review of NOL’s charts. He is going to make some money! Read more…

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