Thursday, May 7, 2009

HVT an example of Divergence

This was one of my Piker's Picks a few weeks ago. I was short on this stock due to the divergence of the MACD and the Price action.



 Notice how the MACD was moving down while the price was moving up.  This is the divergence that was bearish.  Coupled with the overbought Stoch and resistance above 11.50 it was a good short.