Long term correction incoming
Updated
SE has run up over 350% in a matter of months without any monthly consolidation. As seen in the main chart above the monthly RSI is now above 95 and currently forming a reversal candle, which is likely to be the case given only 3 trading days remaining in the month.
Zooming into the weekly chart from here, we can notice that we have bearish divergence along with an overbought condition. The volume the past few weeks has been below average showing that the bulls are running out of steam at these levels.
Zooming into the weekly chart from here, we can notice that we have bearish divergence along with an overbought condition. The volume the past few weeks has been below average showing that the bulls are running out of steam at these levels.
Note
If bullish on this, ask yourself this. If the RSI was over 95 on a 5, 15, 30 min, hour or any other time frame, what would you expect the next course of action to follow in the upcoming candle? Would you buy that 95+ 5 minute RSI in hopes of squeezing water from a rock?
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