didn't beleive when uptrend line solidly above the center macd line the stock can drop so much. never seen this. thought last night drop would not be sustained. must ask gary b. how this can happen . might just altogether forget about charts because of this 14% drop from cmgi . it just doesn't make sense at all !
It made perfect sense and was forecast here. The evening star candlestick was a clear warning. This took place in an overbought condtion. That was extremely bearish. On top of that, the stock was well ahead of itself in terms of a fundamental valuation compared to its peers (that's still the case, but obviously not as much!). Regarding MACD, be careful what the parameter setting are...there's a delay if you use the canned settings. If you use them, then look at the slopes of the MACD lines...go back to the 2-yr chart, look at MACD slopes, i.e., when it began to turn, compared to where the big tops were.