X, after months on the downtrend,finally showed a bullish divergence. Its been on a buy-back program since last year. What I learned about buy-back program is that you have to watch the transactions with an eagle eye every now and then and look for the huge amount of cross or “pasaload” to appear. Cause by then,it’s very likely that the program has already come to an end and that would mean a possible reversal. Pic such as below is a good example. It is the actual screenshot of the transaction of X at the closing today. Look at that cross by Doyts,that’s what we are here for.
But,could that really guarantee us the much-awaited reversal for X? I don’t know,I’m just a newbie! But if you look at the chart,there is something interesting happened,the bullish divergence where RSI started to point up which coincides perfectly just when the cross by Doyts happened. Today’s RSI must be the trough unless negated. Now that’s something to look forward to! It wouldn’t hurt to do a test buy near the support at 7.11 or near today’s closing price while not forgetting to set the stoploss just in case the unexpected happens. Double bottom at the support,by the way.
The PRMX ,after having its 52-week high on a Friday,was expected to experience a sell-off ,based on the rule. During the few hours in the morning, it reached its High-of-Day(HOD) at 5.18 before closing red at 4.85 on a Monday.I sold all before it reaches the previous day’s high. And notice the RSI too that made ‘untog’ at 70. The consolidation right after it is probably the handle of the Cup-and-Handle pattern that is forming.
Here’s what CHP looks like today. On my last post,it was left with two possible choices it might traverse,the rising wedge or the downtrend channel line. It chose the latter after a few attempts of continuing with the wedge. Look at the last candle,it respected the support of the downtrend channel line. Bounce,come Monday?
A few weeks ago, CHP just broke-out from its downtrend channel line.
I haven’t took notice of it before, dead-ma! But upon looking it now,I found out it looks really yummy. You see, I just wanted to experiment on CCI on how it bounces on the channel line up and down. You can see on the chart what I’m trying to mean. As of writing, the last candle is resting on the channel support line, “Enter now!”,you might say. But on the daily chart, I can’t find any supporting evidence that it would be a good time now to enter. So I go down further to a smaller time frame to find a good entry point and some moral support for it.
On the hourly chart, we can now find bullish divergences! On the end part of the down trend,there are two formations! While the prices making lower lows, both CCI and RSI are making higher lows! Now,is it a good entry? We can only find the answer on Monday and the coming weeks!
PRMX just reached its 52-week new high and at 5.00 (All-Time High) and closed at 4.92 last January 27,2017 — which is a Friday. We’ll be focusing on its 52-week new high since I am experimenting on this Friday rule I saw on the internet. The rule is really simple.
Rule number 1: On a new 52-week high, when the market closes at or close to its high on a Friday, buy long and go home long for the weekend.
Rule number 2: Exit the long position on the opening the following Tuesday.
Rule number 3: If the market opens lower on Monday, exit the position immediately.