TRMB has put in a series of lower closes, with corresponding higher 10-day RSI levels indicating a high-probability reversal in the near future. That reversal appears to be underway, with a big gap-up day on April 17th and a follow-through to the 50-day EMA on April 18th.
-- Roy
HD peaked at $207.31 on January 26th and proceeded to selloff with the broader market, to a closing low of $171.80 on March 23rd (17%). At the closing low, the 10-day RSI was 29 vs. 23 on the higher closing low of February 5th, setting-up a positive divergence. The peak RSI between the two lows was 49, so using that as a confirmation, HD signaled a "buy" on...
From its February 6 low of $49.76 ZION is up 14.65% hitting a high of $57.05 on March 9th. It then proceeded to shed 4.52% to a $54.47 low, before rebounding strongly on Friday, to close at the 13 EMA - $55.52. This sets up a classic "4x4 retracement" signal - four consecutive lower closes followed by a rebound towards the primary trend on the fifth day. With a...
Nice setup in ECL with a positive divergence in the 10-day RSI and a break above the 50 EMA on strong volume. Looking for a retest of the recent high, with a stop below the 50 EMA.
I don't normally talk about the general market, but what a wild two weeks! The S&P 500 peaked at 2,873 on Friday, January 26th and dropped 12% to 2,533 on Friday, February 9th. By comparison, the initial plunge during the 2015-16 bear market, in August of 2015, was 11% over just five days – culminating on August 24th “Black Monday.” The chart shows (hopefully)...
NVDA brokeout on January 3rd from a month-long consolidation, rising 29% to $249.27 on January 31st. Tracking the 10-day RSI during this 18% pullback, it bottomed at 34 on February 5th, drifted back up to 50, then dropped back down to 41. Using 50 as the buy trigger, we got the signal on Friday's close when the RSI hit 53. Also supporting the trade is Friday's...
After setting a new monthly high close of $200.43 on December 8th (note the negative divergence on the 10-day RSI), AMG put in four lower closes, setting up a potential "4x4 Retracement" signal on Friday, December 15th. AMG did not disappoint, closing up 2.3% on 2x average volume on Friday - signalling a trade entry for Monday.
HLT has been bouncing off the upper Donchian Channel, at 78.60, since December 4th. Today HLT closed above this level, on slightly more than 2m shares - just over its 20-day average. This on a day where the volume of the S&P 500 was just 58% of average.
I have this setup as a short, but really it could go either way. The 10-day RSI peaked on November 8, setting up a negative divergence when QQQ peaked on November 28. This was followed by a period of increasing volatility, as QQQ traded between support at $152.00 and resistance at $155.50. These areas provide a great trigger for a trade in either direction, with a...
Big Picture:
MRO has retraced 69% (81 days) of its $8.73 decline from $19.28 to $10.55 (250 days). Coming off this strong retracement, MRO has pulled back $2.23 (37%) to a low of $14.36, and is now showing signs of continuation.
The Signal:
On 11/24, the 10-day RSI closed above the highest 10-day RSI value of the pullback. Also on the 11/24 close, an EMA...
After the big earnings gap-up on July 18, Netflix began forming a classic "cup" pattern that lasted from July 27 through September 21, as profit-taking kept a lid on the stock. The depth of the "cup" was ~25 points. The "handle" began forming on September 22 and October 2 provided another data-point, to connect the trendline and form the handle.
On October 4,...
HPE has retraced nearly all of its September 12 - October 2 rise, and is now showing solid signs of reversing off its low. Note that earnings come out after the close on Tuesday.
