NETCARE LTD (NTC, 1597c) | WEEKLY CHART SUGGESTS LONG TERM BREAKOUT BUT SHORT TERM ‘APPROACHING OVERBOUGHT’ OPENS POTENTIAL COUNTERTREND SELL TRADE
The 7-day RSI is a staple in my search for short term trading opportunities. Prints above the 80/85 level suggest the share is strong but approaching an overbought range. A possible scenario is that the share prints 1-2 more days on the upside followed by an exhaustion candle(dark cloud cover, long upper wick etc.). For NTC, the 1620-1635c range is prior resistance which may be tested with an overshoot. Upon a further push higher, the reward-to-risk could be appealing for a short/sell back to the 8/21-day EMA range.