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grems8544
06-25-2011, 05:45 PM
Pascal et al.,

Can you explain how the Lower Boundary can be above the Neutral Boundary? I'm looking at BIIB and this is the present case: LB: $91.06, Neutral $87.04.

Thanks,

pgd

Pascal
06-25-2011, 06:16 PM
This occurs when a stock is in a strong uptrend. The neutral boundary is the place where the average earnings of active players is null. If LB is above NB, it means that buyers come in and push the price higher even before that equilibrium point is reached.


Pascal