disciple33-
regrading SMH as an RVM trade, yes and no. yes it took back
50% of yesterday's candle candle which closed right on the 200 day
MA. Technically if you wanted to go long based off taking
back 50% of that candle and with price very stretched, you could
have. However it didn't have good divergence on the 60 min
chart, which we really like to see, doesn't mean it won't work as
the market is so stretched, but you have better odds if you have
div on the 60 min. Today you have a doji so your next area of
resistance is the high of today's doji. Again the fact that
the market is quite oversold and SMH closed at the 200 MA yesterday
it wouldn't surprise me if it did try to bounce more, but we'll
see..
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disciple33- regrading SMH as an RVM
Follow up on some sectors
Posted by matt on 30th of Jun 2015 at 03:54 pm
disciple33- regrading SMH as an RVM trade, yes and no. yes it took back 50% of yesterday's candle candle which closed right on the 200 day MA. Technically if you wanted to go long based off taking back 50% of that candle and with price very stretched, you could have. However it didn't have good divergence on the 60 min chart, which we really like to see, doesn't mean it won't work as the market is so stretched, but you have better odds if you have div on the 60 min. Today you have a doji so your next area of resistance is the high of today's doji. Again the fact that the market is quite oversold and SMH closed at the 200 MA yesterday it wouldn't surprise me if it did try to bounce more, but we'll see..