2006-10-02 13:20:29 · 2 answers · asked by ridgedynasty 1 in Business & Finance ➔ Investing
A Double Bottom "indicates" no such thing as a rise or any other direction. It simply is what it is.
Having lost almost half of its value in only four months, this stock has got some problems, and you should probably be abreast of what they are.
Currently it is retesting that Double Bottom at $1.10. I would not let it go below $1.05. Set a protective stop and let the market tell you what to do. If it goes up, fine, if it goes down, you're out. At least you can sleep at night.
This is a typical example of why it's better to buy quality, known companies, rather than penny stocks. IBM will not lose half of its value in four months, unless the entire stock market does.
2006-10-02 15:36:15 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
A "Double Bottom" chart pattern formed on Transmeta Corp (TMTA on NASDAQ).This bullish signal indicates that the stock price may rise.
2006-10-02 20:29:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋