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?
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.
On the closing last Friday, I bought a few shares of PRMX to ride on and experiment how this rule goes. Come Monday or Tuesday, I will post a follow-up on this.