How do you know when a stock will go up?


When there is an upswing in OBV, or money flows are strongly positive, but there has not yet been any increase in the share price of the underlying stock, share prices are likely to move higher. Money

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When there is an upswing in OBV, or money flows are strongly positive, but there has not yet been any increase in the share price of the underlying stock, share prices are likely to move higher. Money flows usually coincide with share price moves, but sometimes they occur before the stock reacts. Below are a few criteria that demonstrate investments with near-term upside. You can use these hints to assess a stock quickly. Often, these traits indicate that a stock has a bright future ahead. They can serve as valuable analysis tools for investments of any size.

Watch the money flows

Money flows into and out of stocks, and that impacts share prices. When dollars are flowing from the sidelines into shares, the net result is generally an increase in the price of the stock. The same holds true in reverse, too: Money flowing out of shares can bring the stock price down.You can watch the money flows by using some readily available technical analysis indicators, such as Money Flow and On Balance Volume (OBV). More Information click here stock alerts

Spikes in trading volume

Generally, trading volume spikes when a company has good news or experiences a positive event. Share prices generally increase soon after such events and will continue to move higher until the buying demand subsides, which could be within a day or perhaps many weeks later.

When the daily trading volume increases to at least double the average, while the price of the stock moves higher, it can be an excellent time to invest. This is often the beginning of a nice upward price trend.

See what management has done with previous companies

The best indicator of future results is past performance. Said another way, people will generally continue to do what they’ve always done. This is just as true with company management among penny stocks as with anything else.

Before investing in any penny stock, take a look at stock alerts what the key personnel running a company have done previously. A CEO who multiplied the value of several companies she was involved with should get a lot more credit than one who bankrupted the last few.

Their name, product, or industry keeps coming up

Pay attention to the social buzz surrounding any product or service. When you hear about a new donut shop for the third time in a week, or you see a product name via five different sources over the course of a month, look into the underlying company. Hype can often drive share prices dramatically higher in the short term.

Bank on increasing market share

When a company demonstrates an increase in market share, it implies higher sales, greater product acceptance among customers, and pressure for their competition. The best-case scenario is steady and predictable market share gains, as opposed to volatile and unpredictable changes from one period to the next.

Watch professional investors

For most stocks, professional investors who follow the company purchase a portion of the shares. Typically, these traders have greater knowledge about the company and often use high-level analysis when gauging the future share prices.Institutional investors, such as hedge fund or mutual fund managers, are highly educated about investing and are building their reputation and career on their predictions. You can put more trust in their outlook for the stock than most other investors.

Also, industry or specific company analysts go to great lengths in their research, in order to develop their price targets and expectations. When they predict the shares to double from current prices, whether or not they turn out to be correct, you can assume that they do believe their prediction and have a higher likelihood of being correct than the average person.

Fundamental launch

The financial results from operations for any growing company eventually hit a tipping point. When a penny stock goes from trying to control costs and generate revenues to eventually producing a profit, the shares can really respond. You can predict that tipping point by watching the progress of the fundamentals. Typically a small and growing company will make the step to the higher level by stock alerts at least keeping them stationary, while revenues grow by double digits, such as sales rising by 10 percent each quarter over the previous quarter. By assuming that growth remains at approximately the same rate, you can extrapolate a company’s revenues for the upcoming and not yet reported quarter.

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