Royal Bank of Scotland has broken its over a month long bearish trend, while bounced from it one year long bullish trend. RSI goes up over 50 and MACD also point to green area, where signal line was finaly croosed.
This setup looks like nice opportunity to go long.
Daily chart pattern – Bearish breakout from rising wedge
Failure to hold above 50-DMA if followed by bearish break from rising wedge on day end closing basis coupled with daily RSI breaching rising trend line and falling money flow index would signal a sell-off to 173.80 (Aug 5 low).
On the higher side, only day end close above 50-DMA would signal bearish...
Daily chart pattern – Rising trend line is being put to test
Daily RSI breaching the rising trend line
Daily money flow index diverged from price chart
Overall, prices appear on track to breach rising trend line support on day end closing basis.
Such a move would add credence to failure to sustain above 38.2%...