Weak Action Never Offered Proper Buy Signal
Monday, August 17, 2009 - CANSLIM.net

AsiaInfo Holdings, Inc. (ASIA -$1.03 or to $15.95) gapped down today for a loss on below average volume. Since the stock slumped below its 50-day moving average (DMA) line in early August it was hit with a distribution day on 8/11/09 as it suffered a considerable decline on high volume.  Now it is consolidating near its prior chart lows and its 200 DMA line which may act as support. However, based on its weak action and its Relative Strength rank has slumped to 68, well below the usual minimum 80+ guideline for buyable candidates. Technically, it would have to rally above its 50 DMA and rally above recent chart highs in the $20 area for its outlook to improve.  ASIA was recently featured in the August 2009 CANSLIM.net News (read here). Based on its inability to make progress above its pivot point since, disciplined investors avoided taking action that would have exposed them to any losses. Disciplined entries and exits are critical to investors' success with the investment system.


http://factbasedinvesting.com
http://factbasedinvesting.com/