«Typically, when a stock gets overbought, it is ripe for a pullback because overbought stocks, ones with many buyers reaching to take in supply, tend to snap back after they have gotten too far away from
their longer term trend line,» Cramer said.
The long term trend line will act as a support level.
It is also touching
the long term trend line (pink).
The stock recently broke below
its long term trend line.
The longer term trend line shows a 1 % rise perdecade in ice extent over all available data (since 1979).
During these La Ninas the global surface temperature fell below
the long term trend line, as shown in the plot below.
The current value of
the long term trend line will vary slowly, but the 12 months running average and the red circle around the temp in the last month will retain the newsworthiness of the plot.
Our concern must be the long term warming, and we should therefore concentrate on
the long term trend line.
Three (3) respondents suggest a return toward
the long term trend line of summer sea ice loss.