22nd Century Group, Inc. (AMEX: XXII)
22nd Century Group is a company that I threw on the cover of last month’s edition of the magazine because I noticed almost a 12 month cup and handle forming and thought that a breakout could be imminent. As we can from the chart, that breakout occurred on massive volume as they announced support from the US government for the “low nicotine” cigarettes that they are developing. Entering here when the RSI and MACD indicate that it is possibly overbought would depend on the type of trader you are. There is certainly a fundamental reason for why the stock might be considered “overbought” from a technical standpoint. I’m interested to see how the stock behaves once the moving averages catch up to its price!
179