As mentioned in my previous post, I analyze both the MACD
and the RSI
before I invest in a penny stock. The two things I look for are: 1) a crossover of the MACD
and 2) a crossover of my "RSI Trigger Line" which is set at 50. In this case, the MACD
has already crossed over and the RSI
looks like it has a good chance of crossing the trigger line during the next trading session. Based on past trends, the stock appears to respond quite well to these indicators. In this case, I am going to buy it at the open and cut my losses of it drops down to a price of 1.37, or in other words, a drop in price of 10%.