The daily chart printed a bullish hammer on Tuesday that has remained a clear reversal signal. Price also bounced off of the lesser used 100 MA, right out of the support zone.
The thing that gives me pause is that RSI has NOT made it down to oversold yet after being overbought with bearish divergence. It always makes it down to oversold eventually, but hard to know when. Could be on the next major dip far down the road. But statistically, you would expect it to hit when we are this close.
The thing that gives me pause is that RSI has NOT made it down to oversold yet after being overbought with bearish divergence. It always makes it down to oversold eventually, but hard to know when. Could be on the next major dip far down the road. But statistically, you would expect it to hit when we are this close.
scott.melker@texaswestcapital.com