IFAST - Bearish Reversal with slow accumulation phrase
Updated
Using Bollinger Band and the combination of the Relative Strength Index (RSI) above will help us to better time our entry and exit points. RSI is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock. A reading close to 70 can be interpreted as overbought or a bullish trend reversal. While a reading of 30 can be interpreted as oversold indicating a bullish trend reversal.
In August 2019, we have seen signs of oversold in the RSI indicator hovering below 30. The lower limit Bollinger band has been a helpful supporting line supporting and stabilizing the price between $0.99 to $1.03. This stock has been going into accumulation phrase with buyer slowly buying stock in slow motion through the time and sales. We do not see opportunity in doing short-term scalping for sideway range movement as the range is small. We might see a breakout soon, as the Bollinger bandwidth getting smaller and smaller which is also known as Bollinger band squeeze. With a Bollinger band squeeze, there will be a potential breakout ahead. In this case, we will favor a strong upward move with the oversold RSI confirmation. The entry price will be between $1.01 to $1.04 with a first level take profit of $1.20. We will set a stop limit @ $0.96 to limit potential downside risk in case there is a heavy selldown that invalidate our analysis.
In August 2019, we have seen signs of oversold in the RSI indicator hovering below 30. The lower limit Bollinger band has been a helpful supporting line supporting and stabilizing the price between $0.99 to $1.03. This stock has been going into accumulation phrase with buyer slowly buying stock in slow motion through the time and sales. We do not see opportunity in doing short-term scalping for sideway range movement as the range is small. We might see a breakout soon, as the Bollinger bandwidth getting smaller and smaller which is also known as Bollinger band squeeze. With a Bollinger band squeeze, there will be a potential breakout ahead. In this case, we will favor a strong upward move with the oversold RSI confirmation. The entry price will be between $1.01 to $1.04 with a first level take profit of $1.20. We will set a stop limit @ $0.96 to limit potential downside risk in case there is a heavy selldown that invalidate our analysis.
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