"stochastic is to determine if the counter is overbought or undersold" --> Spot on bro! And MACD is similar to stochastics too, just that it's a lagging indicator

the resistance is *around* 0.29-0.3 (the whole area there is a trading range, so more difficult to establish an exact price)

The way this counter hsa been performing, u can tell that it is considered "Trending Downwards". Therefore, unless it can rise above 0.3 (called a breakout), AND rise above with HIGH VOLUME, it is still a downward-trending stock. The reason this is so, is because trending stocks need a strong change to be an effective reversal.

Downward trending stocks are usually more risky as the overall direction is down.....so long term = loss. Better to play short-term, and ONLY on dips with stochastic/MACD confirmation :gran: