MY BHS TA study for a friend

http://stockcharts.com/def/servlet/SC.web?c=BHS,uu[w,a]daclyiay[pb50!d20,2!f][vc60][iut!Ub14!Ua12,26,9]&pref=G First is the daily chart, though some methods say to ONLY start with weekly, more on that later.

We can see the 50 SMA (simple moving average) is RISING and has SUPPORTED the move up, this is bullish.

The RSI (relative strength) has been OVERBOUGHT (above 70 SHADED READING) but can stay that way for awhile.
MACD (moving avg convergence divergence) is one of the BEST tools to guess on HEALTH of the move.

Notice how the DARK BLACK line (faster moving avg) is curling down and looks weak.

http://stockcharts.com/def/servlet/SC.web?c=BHS,uu[w,a]waclyiay[dd][pb50!d20,2!f][vc60][iut!Ub14!Ua12,26,9]&pref=G Weekly chart also shows RSI as overbought (above 70)

SO, IMHO, some kind of correction could be due.

What I would want to see, or the most POWERFUL signals are when for buying the MACD was below 0 and moves upward, better to see this on weekly FIRST, that way better chance trend will hold.

IF INDEED a bullish trend, you go to DAILY chart and BUY when oversold signal is given until trend changes.

http://stockcharts.com/def/servlet/SC.web?c=BHS,uu[w,a]daclyiay[dc][pd20,2!b50!f][vc60][iut!La12,26,9!Uj[$SPX]]&pref=G Lastly a little CLOSER look.

I use the relative strength tool and you can see how DARKER green trendline has stayed above slower thin line the WHOLE MOVE! But it also looks toppy.

CAN YOU see CLEAR BUY SIGNAL that was given in NOVEMBER? (on last chart?)

MACD BUSTED up from below ZERO at same time PRICE RELATIVE went above trend line. AND!!!! It vaulted ABOVE the 50 SIMPLE MOVING AVG! WOW, I wish I had seen it then!

Risk to reward IMHO is not the same now.

Duratek