It is not a very clear picture of H&S of the PKD chart. However on the NYMEX chart it is definitely more defined. I personnally would use the NYMEX to guage/correlate the right shoulder heighth for PKD. I do not know of anything that would not apply to PKD or the NYMEX when it comes to TA, moving averages, stochastics, MACD, etc.. About PKD crossing 4, I don't have an opinion one way or another with regard to the H&S pattern. Good luck. ezgreen
I dont believe that TA has any particular use in this and other small caps. Take todays trading as an example. From 12 oclock on the bid/ask was 3 1/16-3 1/8 with a bid ask size of 100,000-20,000. The trading from that point, was so curious that I followed it closely for the remainder of the day just to see what was up. With the exception of 2 small sales at 1/16, every transaction was a buy at 3 1/8. The chart was a flat line. While these buy transactions were small (less than 5,000) they still added up to 50,000+ shares by 3:30. Oddly there were no large trades, and despite turning over 50,000 shares, the ask size did not budge by even a single share. This meant that the specialist was selling (short) shares from his account every time a buy went in. Then at 3:40 the bid size popped up to 150,000 and instantly a 50,000 share sell came in to chew up the excess. After that sale (the specialist had a nice day) trading resumed as normal. Every purchase resulted in a drop in ask size and the large orders suddenly reappeared to send the price up. At the close the ask was up to 3 1/4. What this tells me is that the 50,000 share sell was phoned in early; the specialist was ALLOWED to accumulate a short position KNOWING that all the large buyers would not mess up the plan by sending up the price until AFTER the specialist grabbed his profit. To summarize; the price action today was clearly manipulated and obviously by only a few people. How can you evaluate that with a chart?
With all due respect. I am making the assumption that you are knowledgeable in TA when you make the statement that it does not apply to small cap stocks including intraday activity and the specialist activity. I don't have an answer for you. Good luck. ezgreen