Potential outside week and bullish potential for RMS

Entry conditions:
(i) higher share price for above the level of the potential outside week noted on 31st January (i.e.: above the level of $2.48).

Stop loss for the trade would be:
(i) below the low of the outside week on 28th January (i.e.: below $2.26), should the trade activate.

Trade active

UPDATE (week ending 07-Feb): Trade activated Monday 3rd February with above average volume and market recognition following release of quarterly earnings report the prior week. Share price continued to ascend during the week with a 'dip' at the end of the week whilst maintaining a price above the 10 and 30 day MA's. Current breakout in price is supported by the potential support/resistance area of $2.49 from the open of 23rd October 2024 (not proven unless tested), although a further high from this point would be an indication of strength in the share price since this would be a further all-time high at that stage. Charts suggest the use of a trailing stop and monitoring of indicators such as DMI/ADX and RSI.

Note

UPDATE (week ending 14-Feb): Fairly sideways action over the past week in share price for RMS, awaiting for movement in one direction or the other. Interesting to note that the share price bounced off the 10 day MA to the upside on Wednesday alongside an improvement with DMI/ADX and RSI indicators. A breakout to new highs would suggest raising stops to a profitable area of just under the then proven support area of $2.49 from the open of 23rd October 2024 (noted in last week's comment) or under the then new swing low of $2.56 from 12th February, depending on aggressiveness / risk tolerance. Trade moved to 'further bullish potential' watchlist.

Note

UPDATE (week ending 21-Feb): As suggested in last week's note, with the breakout to new highs, the charts are now suggesting a raise of profitable stops to under the new swing low of $2.56.

Note

UPDATE (week ending 28-Feb): Share price closed between 10 and 30 day MA's, indicating first strike of caution, however the profitable stop under the swing low of $2.56 noted in last week's comment remains intact for the meantime.

Note

UPDATE (week ending 07-Mar): Share price closed above 10 and 30 day MA's, with the share price now testing a potential resistance point that may be developing at $2.76 (which might be formed from the open of 26-Feb). Profitable stop under the swing low of $2.56 noted in recent week's comments remains intact for the meantime - this could be raised to under the swing low of $2.61 of 28-Feb should a new swing high be made in the share price.

Trade closed: stop reached

UPDATE (week ending 14-Mar): New swing high was made in the share price (as suggested in last week's comment) on Monday 10th March to $2.82, which allowed aggressive raising of the protective stop under swing low of $2.61 of 28th February (e.g.: $2.59). A good thing too, since the share price aggressively fell the very next day right through this area. Congratulations on a great trade before the floor fell out of this!

Ivory_Wolf

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Ivory_Wolf

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