First let's look at the Daily (left side):
- We hit a RSI of around 96 the second time and are highly oversold. The first time it market a temporary Top!
- Normally a stock moves in Waves. We detached from the MAs and are likely to return to the 50 ema earlier or later.
- Volume Analyses also shows signs of excessive bullish volume we normally see on overshooting tops.
Let's look at a shorter time frame now (4h - right side):
- We see a weakening RSI.
- The Trend has not broken down so far and the 9 ema is still holding. I suggest to at least set a stop or Trailing stop below here.
- The VolumeAnalyses is showing sell signs (red triangle down)
Conclusion:
In case of a pullback the first "Volume support" is around 15. Which is marking the top of the prior re-accumulation phase.
A backtest of the "last point of support" is normally needed to confirm the bias and regain strength for the next move.
The bullish scenario would be a pullback on low volume, that is holding the support zones.
- We hit a RSI of around 96 the second time and are highly oversold. The first time it market a temporary Top!
- Normally a stock moves in Waves. We detached from the MAs and are likely to return to the 50 ema earlier or later.
- Volume Analyses also shows signs of excessive bullish volume we normally see on overshooting tops.
Let's look at a shorter time frame now (4h - right side):
- We see a weakening RSI.
- The Trend has not broken down so far and the 9 ema is still holding. I suggest to at least set a stop or Trailing stop below here.
- The VolumeAnalyses is showing sell signs (red triangle down)
Conclusion:
In case of a pullback the first "Volume support" is around 15. Which is marking the top of the prior re-accumulation phase.
A backtest of the "last point of support" is normally needed to confirm the bias and regain strength for the next move.
The bullish scenario would be a pullback on low volume, that is holding the support zones.
Comment:
The RSI is of course highly overbought, not oversold!