As you'll know, RiverSoft floated on 13 December, so there isn't much to go on as far as TA is concerned.
However, it does look quite good TA speaking: RSI is above 50 line, MACD lines have crossed going up, the MACD oscillator is positive, CCI is doing well, and for the last three days the price has held on or above the 20 period exponential moving average.
Thanks for bringing RiverSoft to my attention - it looks good so far.
Thanks skim. Up 15% so far today. Bought in at 110 on Monday in my first trade since March so I'm a very happy chappie! Anyone know any reason for the movement upwards. Don't know whether to sell or hold on for more. What's the charts say on this one. Still positive? Thanks
Nearest competitor I understand to be Orchestream (OCH).
Very highly thought of and judging by the way this one rocketed from 340 to 700 following flotation in June 2000
I see no reason why you should not profit from RSFT - Naz willing of course. Don't forget to take profits if Naz turns - you can always buy them back again.
I don't know whether you are using any charting software to track prices, but if you are you're probably already aware that today the price closed at its highest since the float. This is good news, because it means it has no resistance to overcome on its way up, until of course it creates its own resistance.
However, you'll see from the price chart over the last week that it is now in a parabolic run. A parabolic run is an angle which exceeds the normal angle of ascent, and the angle is usually greater than 45 degrees.
My understanding of parabolic runs is that you should expect a retracement - likely to be 30% to 50% of its recent move, so if it retraced now it would go down between 13p and 21p or thereabouts. I also find that if you put a 17 day exponential moving average onto the chart, the price is likely to retrace to just above it. Once a parabolic move has taken place and a reversal day is in place, look for a consolidation to occur.
One of my stocks has just had a parabolic run, and I couldn't decide whether to cut and run, or hold through the retracement. As it was one held in my ISA I decided to hold because, like RiverSoft, other indicators were good and not indicating a sell. It duly retraced 50% of the parabolic run, and is now nicely holding on and above the 17 day moving average, and today closed way above the height it reached during its parabolic run.
The first time a parabolic run happened to me I didn't know about them, nor indeed what was likely to happen. I do now, and therefore am not too worried when a retracement happens if I'm holding for a longer-term play.
It might help you to look at other charts to find parabolic runs - they seem to happen over 4 or 5 days (sometimes longer, sometimes shorter). Bank of Scotland, Hilton Group, and Billiton have all had recent-ish parabolic runs.
Thanks guys. Had a quick look at the parabolic runs of the above stocks. Interesting. Quick, sudden rises, followed by a fall (inevitable profit taking?) then continuing on its upward trend. According to this should I expect RSFT to fall over the next couple of days before rising again past the price where it began to fall? That's my reading, is it correct? Also, I think BLT and HG. have further to go. What do the rest of you think? Thanks. Still learning!
Glad to hear that your first trade is a successful one...having said that RSFT has been in a parabolic run for 4 days gaining almost 40%..that's a great run..if not supported with superb positive news retracement is imminent...just checked OBV, as other TA aspects won't be much helpful considering the length of time it's been traded..it's not sharply up to keep the run going for longer..still it's a new stock and we don't know what habits it will make..so tomorrow could be crucial.. if the uptrend stops or a reversal starts, my suggestion would be to take the 20+% profit and wait for a support level to form and further news to establish a clearer picture of the company...one thing one should keep in mind is that it is the positive news making people jump in this particular one and not TA..so watch the news I'd say..
For example on Jan. the 15th there was this announcement on `Amended notifications of disclosable interests in shares` resulting in the following institutional holdings:
SHARES HELD MANAGEMENT NOMINEE/REGISTERED NAME
43,000 FMRCO STATE STREET NOMINEES LIMITED
1,005,000 FMRCO CHASE NOMINEES LIMITED
1,861,200 FISL CLYDESDALE BANK (HEAD OFFICE) NOMINEES LTD.
442,900 FIL LLOYDS BANK PLC
4,731,100 FIL MSS NOMINEES LTD.
555,600 FIL CHASE NOMINEES LTD.
1,111,200 FIL CLYDESDALE BANK (HEAD OFFICE) NOMINEES LIMITED
Note that the parabolic run started just a day prior to this announcement...
Still hanging in there. Had a chance to take profits this am at 157 but decided to hold as it had so much upward momentum this morning. Went away for a few hours and it had fallen to 145 bid. I contemplated getting out there but decided against it as it was still up on the day. Finished at 140 bid. Is 160 a resistance here or why did it come down so fast off this level. Fingers crossed for tomorrow! Thanks
ps please correct me if i'm talking nonsense or any of my reasoning is just plain stupid. Cheers!
Well got out for a 25% profit. Not bad but could have been better! It hit a low of 108 I think (no historical trade data available from advfn so working from memory) about 10 days ago. There has been a healthy rise since against the trend of most other tech stocks. They have also recently concluded a deal with Cisco to provide Cisco with a tailored version of Riversoft Fault Manager. The last few days has seen some increased activity in the stock and a price increase. Is this ready for another good run? Cheers