LOK looksmart limited

interest building? (again)

  1. http://host.businessweek.com/businessweek/Interpretive_Text.html?Report=Corporate_Snapshot&IntText=NORMAL&Symbol=LOOK&


    LOOK last opened for trading at 2.490. The stock shows an intraday high of 2.500 and a low of 2.340 -a trading range of 6%. The last trade was at 2.369 volume showing 1,250,200 shares exchanging hands.

    A "Price Gap" occurs on a chart as demand outweighs supply. When a stock is under accumulation and buy orders exhaust the quantity of available shares priced within a specific range, those seeking to purchase must raise their bid to reach the next point at which holders are willing to sell. With its most recent open at 2.490, LOOK shows a positive opening gap of greater than 5%. If this is accompanied by strong relative volume, the stock could be beginning a new upswing. If there is no news accompanying this price increase, keep a watchful eye for continued strength.

    The Moving Average is derived by calculating and charting a stock's average price for any specific time frame such as 10-days, 50-days or even 200-days. This Average is called "Moving" because it is updated daily with the closing price for the most recent session replacing the oldest value in the data set. When plotted on a stock's price chart, this technical indicator provides a reference point for analyzing trends and performance.

    Given its positive divergence of greater than 10% from the 200-day moving average line, LOOK could be either in the beginnings of a new long-term uptrend, or consolidating near a point of major technical support. This divergence could be indication of growing momentum if the stock has recently posted big gains, or long-term strength if the stock has pulled back and held near its current range.

    The 50-Day Moving Average Line offers a basis for comparison of a stock's current price to its average price for the most recent ten weeks of trading. LOOK is trading more than 10% below this important indicator, which implies intermediate weakness. If the stock has recently posted gains fueled by investor accumulation, then a break back above the 50-day line in the near term will provide technical indication of a possible recovery. However, if the stock has recently pulled back, watch for decreased volume and volatility in its current range as early indication of a base or level of support.

    LOOK is trading near the 10-Day Moving Average Line, which implies the possibility of recent weakness. However, if the stock is above the 50 or 200-day moving average line by a significant margin, this is indication of a broader uptrend and some might consider the recent pullback an opportunity. Understanding a stock's performance with respect to these three important indicators is essential. Furthermore, timing entry and exit points (in any time-frame) requires thorough analysis of a stock's relationship to the moving average lines.

    If LOOK shows to be near its 10-day moving average line but is below either its 50 or 200-day line, the stock might be reversing a downtrend or rallying in the short-term. Additionally, volume is an important indicator to consider in conjunction with the moving average lines. The higher the volume for a stock when it moves above or below its moving average lines, the more significant this technical divergence is for investors.

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