Our first sleeper pick traded at the close of 1.75, with a high of 1.80. Today's candle shows a long wick which accounts for nearly 25% of the candle. This means that buyers/ bulls tried to drive the price up to 1.8, but there were more sellers at that level and the sellers/ bears drove the price back down to 1.75. (click on photos to enlarge)
Will price go down? Let's look at the stock's history:
Resistance area closer to recent price:
If you notice on the photo above, I use RSI 30. I feel more comfortable with this setting than RSI 14. I learned this from Spyfrat and how it can be a powerful tool aside from just determining overbought and oversold areas. Here's a link to his blog: Spyfrat's Call
RSI 14 vs RSI 30. It's all a matter of personal preference.
FLI will likely go down tomorrow. Keep an eye on price action while it declines and see if it bounces off of the 23.6%, or 38.2% fibonacci retracement levels.
Retracement to price are as follows:
23.6% retacement = 1.70
38.2% retracement = 1.65
Or you can use today's low as your stop loss (1.66). If it falls below that, then CUT to preserve profits.
Will write an article for EW soon, so keep an eye out for that, or subscribe to this blog (Its free!) so you can be notified via email once I make a new post.
Caveat and God bless!
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