Alright, Boys, I would like feedback on my analysis of the potential movement of AGI. I'll start with what caught my eye and inspired me to do a Technical Analysis. I was looking around at the market, and for some reason or another, I had this urge to check out what Gold related stocks were doing. Interestingly enough, the majority of them looked like they were forming Triangle's/Wedge's simultaneously. I'm a new trader, so I don't have enough experience under my belt to know if something like this is common within stocks of an industry or if it's an actual phenomenon. Either way, I decided to check it out.
So I whipped out the good old Stoch RSI, Volume, and Parabolic SAR to check out AGI's vitals, so to speak. The Stoch RSI was indicating that AGI barely entered the overbought zone, which, to my knowledge, means that AGI's price should fall just a tad since It wasn't too deep in the overbought zone. However, the Parabolic SAR was telling another story. Once again, to the best of my knowledge; according to the Parabolic SAR, the price of AGI still had room to go up before reversing. On top of that, the Volume of trades AGI was experiencing for the past two weeks was a lot higher than January & February. Which could easily be attributed to COVID-19 and stumped me on which direction the price would go.
I was ready to scrap the idea when I remembered something vital. The NFP (Non-Farmer Payroll) was coming out the next day (April 3rd)! This helped me envision what price movement AGI would potentially experience. I figured while everyone in the market is shitting bricks over the unemployment rate of the US, they will try to dump money into assets that are considered "safe" and I'm confident to say that Gold is in the top 10 list in many investors minds for that category. With that idea in mind, the conflicting Stoch RSI and Parabolic SAR indicators made a lot more sense. In my mind, I saw AGI's price increase according to the Parabolic SAR uptrend and fear from the NFP reports pushing the price high into the overbought zone, for the Stoch RSI, which in turn would push the price down past the Parabolic SAR's uptrend mark causing it to reverse into a downtrend potentially using it into somewhere in the middle or into the oversold zone.
Anyway, I'm excited to see how this plays out and feel free to comment your thoughts on this Idea! I would appreciate constructive criticism since it will help me grow as a trader.
Cheers, LDG
This is NOT trading advice! You would be a fool to follow a random idea found on the internet. Be a good human and use that big brain of yours to make decisions for yourself :)
- very good chatch, try visit dayprotraders.com or stochastic-macd.com or 24elliottwaves.com ... always free to contact me if you would like to have a second opinion on a stock. Although I am not a professional trader, I have been learning since 2 years with passion. Looking at higher time-frames and objectively, in many different ways, is the key to success.
LDG25
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@heish, Thank you for the learning resources; I much appreciate them! Likewise, I've been learning with a passion for about a year!
heish
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@LDG25, most welcome. its one guy who owns these websites, truly good intentions.
LDG25
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A little off on the timing, but at least it was early!