Proteome Sciences results in big news CJD + Stroke tests

This is the basics of the other tread started re the chartest view of the share.

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There has been a lot of speculation and positive tips on Proteone this weekend.
The epic is PRM.

Here I intend to take a "hot case" as a case study to show how technical analysis can help us.
I have not read the tips in the mail, nor the articles, but it is enough to surf a couple of Bulletin board, to realize PRM is one of the hottest stocks of the moment. The question, therefore is, should we buy it on Tuesday?

As a general rule I am against chasing any stock, which has been tipped in the weekend press.

In addition to this, technical analysis is giving me other reasons NOT to buy PRM on Tuesday.

1) Volume has been going down each day since 19th December, while the share price has gone up. This is very bearish. (Intuitively, think that there are each day less people interested to chase higher this stock.)
2) On 19th December we had a very robust day. The share price went up big time. However, there were 663,343 shares traded at bid and only 135,681 at ask. I can accept that the majority of the 692,602 shares traded at mid price were buy, for the argument sake, still, I am worried about the large number of people who took this opportunity to sell.
3) The intra-day high on 19-20-27 and 29th give us a multiple tweezers top, a reversal signal.
4) The upper Bollinger band is at 90.13. Now, on the Cityinvestor board (which you can find at www.sharkinvested.com), which is one of my favourite sites there was an interesting discussion on whether the fact that the share price is touching the upper band is positive or negative.

In this case (I will write on the way I sue Bollinger bands separately), it is not good, to put it simple. Why? Look at the graph in November, in that occasion, each day the share price was touching the band, was an up day and so was the day after, until when we had an overbought situation. In December, the scenario is different, we have already noted that the intra-day high on the 19th Dec has not been overtaken yet.

The stock is losing momentum.
It may well go up on the back of the tips, but I fail to see elements telling me it will carry on for longer. Stochastics, in fact, indicate that the stock is already overbought, thus giving us not too much room for the upside.

I for one, I will not bother with this stock. Although there is a very nice up-trend from the middle of October (take the intra-day low on the 13th October as the starting point), I believe we will be able to buy PRM cheaper after Tuesday.

The above does not constitute financial advice.