PRTS retraced today in normal fashion back down to support. Its very early but its quite possible its forming another bull pennant which Ive drawn in. Not concerned with todays pullback. on a high beta stock like this multi % days up and down are the norm. Especially after a massive move up last week. It did stay within the uptrend established back from the low in March.
What is interesting is the wedge and rising support line in the RSI on the daily. If the trend continues at some point soon (likely just before earnings) the stock will be in a perpetual state of being oversold. That in itself is not a signal to sell. I think another breakout up is very possible but am personally eyeing an exit strategy where the new bull pennant (if its confirmed) and the rising support line in the RSI are going to coincide with Q2 earnings.
What is interesting is the wedge and rising support line in the RSI on the daily. If the trend continues at some point soon (likely just before earnings) the stock will be in a perpetual state of being oversold. That in itself is not a signal to sell. I think another breakout up is very possible but am personally eyeing an exit strategy where the new bull pennant (if its confirmed) and the rising support line in the RSI are going to coincide with Q2 earnings.
Comment:
Meant to say over bought*