Nextnat

Weekly and daily chart showing that Nextnat is still in a downtrend since early of December 2006. The previous support at 0.260 already broken on 2th July 2007 with the panic selling which already tested twice at the lowest 0.235 and take a breath at old support 0.245. On the last trading session, the security price has set a new 14-period low while the RSI has not in both time frame. This is a bullish divergence.

What is RSI? The Relative Strength Index (RSI) is a technical analysis oscillator showing price strength by comparing upward and downward close-to-close movements. It was developed by J.Welles Wilder. Bullish divergence occurs when a stock or index makes a low high in price and the RSI indicator makes a higher low. Bearish divergence is just the opposite -- price will make a new high, but RSI makes a lower high. Typically, bearish divergence is marked by a rising trendline above the price action and a falling trendline on the RSI indicator and visa versa.

When will Nextnat make a reversal in trend from sharp down move and end of the 7-months downtrend? What will be next? We will see...