SubscribeMail Time: Answering Questions from YOU
In a recent email I was asked, “Do the charts for Upstream Biosciences (UPBS) justify holding the stock or should this investor take the loss and move on.”
Well, first it is important to realize that longer-term technical analysis works best on stocks not considered penny plays, meaning that the security trades below $5.00/share. This is due to the fact that any sudden buy/sell activity or major news could severely alter the technicals.
However, I can help guide your investment ship in the short-term. From the charts I can see a head and shoulders “reversal pattern.” What is important here is the neckline support. In English, this is the horizontal black line drawn to show where the stock found buyers stepping in to hold up the stock. If the stock trades below this line, you should liquidate your position and take the loss. Furthermore the MACD is signaling you to sell, but the DMI is struggling to hold positive, which is the only reason why you are not losing even more money.
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