VIA Watch

The entertainment company Viacom Inc.'s Class B shares (VIA/B) have covered 4.6% low to high in today's sharp rise accompanied by a volume spoke that's approaching 20% above the prior day's. The macd switched to bull phase.

	trend	adx	psar	pps	macd	macd trend	sto	sto trend
VIA/B $33.32

At first glance it's an attractive picture of robust bullishness, but there are reasons for to be skeptical.

First, the volume spike puts shares traded in the range of Friday's and Monday's trading. Although the volume increase is large compared to Tuesday, it is in line with many days over the past three months.

Second, after rising, the price pulled back and the stock is trading about 1.5% below the high. an hour before market close.

Third, the price has yet to break through resistance at around $34.30 or so.

Fourth, the macd's switch to bullishness follows a one-day sojourn in bear phase. So, really, it's not so significant.

Big picture, VIA/B has been on a downslide since August 2000, and has yet to make a higher high that would indicate the downtrend was reversing.

So, this is not a stock that's going place. I would like it were the price to break above $34.50, and I'd like it even more above the swing high of $37.07. But for now, despite the bullish look to today's trading, no thanks.

Reversal Levels

• $37.07, +11.3%
• $34.72, +4.2%
• $34.52, +3.6%
• $34.00, +2.0%
• $33.32 <== You are here.
• $32.13, -3.6%

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Disclaimer

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

Abbreviations:

• psar - Parabolic Stop and Reverse
• adx - Average Directional Index
• pps - Person's Proprietary Signal
• ma20 - 20-day moving average
• macd - Moving Average Convergence-Divergence
• sto - Fast Stochastic

About the glance: The colors indicate the state of each signal.

• trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
• adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
• psar, pps, macd: green for bull mode, red for bear
• sto: green for overbought, red for oversold, yellow for the neutral zone.