I expect the price of Eutelsat will zigzag in the ascending channel for the foreseable future. Long positions may be entered when the RSI reaches it support line. Short positions may be taken when RSI is overbougth. Let me know what you think of this idea.
why would you want to short if RSI is overbought ?
wouldn't it be better to see if the ongoing consolidation it's a distribution before you short , or if it's an accumulation before you long ?
Jeff_Trad
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@MadNigerian, Hi. Thank you for you kind comment. Food for thought indeed! I just noticed that on daily candles, the price has often taken a good dive in the following days of an overbought RSI. Maybe not good reason enough reason to short as you mention. I guess it probably depends on your investment strategy on Eutelsat (accumulating over long term, or swing trading).
wouldn't it be better to see if the ongoing consolidation it's a distribution before you short , or if it's an accumulation before you long ?